Discounted Cash Flow (DCF) Analysis Unlevered

News Corporation (NWS)

$15.42

+0.10 (+0.65%)
All numbers are in Millions, Currency in USD
Stock DCF: -5.87 | 15.42 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 9,02410,0749,0089,35810,38510,798.1711,227.7711,674.4612,138.9312,621.88
Revenue (%)
EBITDA -680999-5791,1241,462476.04494.98514.67535.15556.44
EBITDA (%)
EBIT -1,152340-1,223444774-232.59-241.85-251.47-261.47-271.88
EBIT (%)
Depreciation 472659644680688708.63736.83766.14796.62828.32
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 2,0341,6431,5172,2361,8222,097.622,181.072,267.842,358.072,451.88
Total Cash (%)
Account Receivables 1,6121,5441,2031,4981,5021,663.261,729.431,798.231,869.781,944.17
Account Receivables (%)
Inventories 376348348253311371.08385.84401.20417.16433.75
Inventories (%)
Accounts Payable 605411351321411476.60495.56515.28535.78557.09
Accounts Payable (%)
Capital Expenditure -364-572-438-390-499-508.52-528.75-549.79-571.66-594.40
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 15.42
Beta 1.295
Diluted Shares Outstanding 592.50
Cost of Debt
Tax Rate 23.28
After-tax Cost of Debt 1.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.916
Total Debt 4,155
Total Equity 9,136.35
Total Capital 13,291.35
Debt Weighting 31.26
Equity Weighting 68.74
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 9,02410,0749,0089,35810,38510,798.1711,227.7711,674.4612,138.9312,621.88
EBITDA -680999-5791,1241,462476.04494.98514.67535.15556.44
EBIT -1,152340-1,223444774-232.59-241.85-251.47-261.47-271.88
Tax Rate -39.03%56.21%16.73%26.67%23.28%16.77%16.77%16.77%16.77%16.77%
EBIAT -1,601.59148.87-1,018.36325.60593.84-193.58-201.28-209.29-217.62-226.28
Depreciation 472659644680688708.63736.83766.14796.62828.32
Accounts Receivable -68341-295-4-161.26-66.17-68.81-71.54-74.39
Inventories -28-095-58-60.08-14.76-15.35-15.96-16.60
Accounts Payable --194-60-309065.6018.9619.7220.5021.32
Capital Expenditure -364-572-438-390-499-508.52-528.75-549.79-571.66-594.40
UFCF -1,493.59137.87-531.36385.60810.84-149.21-55.18-57.38-59.66-62.03
WACC
PV UFCF -138.94-47.85-46.33-44.86-43.43
SUM PV UFCF -321.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.39
Free cash flow (t + 1) -63.27
Terminal Value -1,173.92
Present Value of Terminal Value -821.90

Intrinsic Value

Enterprise Value -1,143.30
Net Debt 2,333
Equity Value -3,476.30
Shares Outstanding 592.50
Equity Value Per Share -5.87