The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,760 M
Debt : $2,920 M
EBITDA : $1,350 M
Net Debt (Debt - Cash): $1,160 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Communication Services
Industry: Entertainment
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 33.22
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $533 M
Average Revenue: $9,123 M
Free Cash Flow to Revenue : 6 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-06-30): $10,085 M
Revenue 4 Years Ago (2020-06-30): $9,008 M
Revenue Growth: 2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-06-30): $574 M
Share Count 5 Years Ago (2020-06-30): $588 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $0.94
Dividend Per Share (DPS): $0
Payout Ratio: 21%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -3%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $31
52-Week Low: $24
Threshold Price (15% Above 52-Week Low): $27
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $15,600 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 16 points to above News Corp B (NWS) stock.
Twenty Years Avg PE 35, Fair Value PE 12, Industry Based PE is 18 and Growth based PE is 15. Based on these all values average assigned is 20.00.
Value-Trades has assined P/E value 20.00. Since current year earning per share is $0.94.
The fair value of News Corp B (NWS) stock should be (20.00 x $0.94) = $18.80
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