Definitive Analysis
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News Corporation (NWS)

Company Dividend Discount ModelIndustry: EntertainmentSector: Communication Services

Valuation Snapshot

Stable Growth$21.14 - $33.39$26.74
Multi-Stage$26.96 - $29.56$28.24
Blended Fair Value$27.49
Current Price$34.55
Upside-20.44%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.21%19.95%0.330.300.310.310.290.280.280.280.270.26
YoY Growth--7.56%-1.15%-0.57%7.36%3.16%-1.86%1.90%3.95%3.40%390.00%
Dividend Yield--0.94%1.08%1.46%1.99%1.23%1.99%1.98%2.05%1.96%1.82%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,173.00
(-) Cash Dividends Paid (M)197.00
(=) Cash Retained (M)976.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)234.60146.6387.98
Cash Retained (M)976.00976.00976.00
(-) Cash Required (M)-234.60-146.63-87.98
(=) Excess Retained (M)741.40829.38888.03
(/) Shares Outstanding (M)569.20569.20569.20
(=) Excess Retained per Share1.301.461.56
LTM Dividend per Share0.350.350.35
(+) Excess Retained per Share1.301.461.56
(=) Adjusted Dividend1.651.801.91
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.21%2.21%3.21%
Fair Value$21.14$26.74$33.39
Upside / Downside-38.81%-22.61%-3.37%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,173.001,198.871,225.311,252.341,279.961,308.191,347.43
Payout Ratio16.79%31.44%46.08%60.72%75.36%90.00%92.50%
Projected Dividends (M)197.00376.87564.58760.39964.561,177.371,246.38

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate1.21%2.21%3.21%
Year 1 PV (M)342.06345.44348.82
Year 2 PV (M)465.11474.35483.67
Year 3 PV (M)568.56585.58602.94
Year 4 PV (M)654.61680.87707.91
Year 5 PV (M)725.23761.78799.78
PV of Terminal Value (M)12,590.0313,224.4413,884.18
Equity Value (M)15,345.6016,072.4616,827.31
Shares Outstanding (M)569.20569.20569.20
Fair Value$26.96$28.24$29.56
Upside / Downside-21.97%-18.27%-14.43%

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