Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

News Corporation (NWS)

Company Dividend Discount ModelIndustry: EntertainmentSector: Communication Services

Valuation Snapshot

Stable Growth$21.35 - $33.83$27.04
Multi-Stage$27.33 - $29.97$28.63
Blended Fair Value$27.83
Current Price$34.55
Upside-19.44%
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 Rate9.02%9.02%9.02%
Growth Rate1.21%2.21%3.21%
Fair Value$21.35$27.04$33.83
Upside / Downside-38.21%-21.74%-2.10%

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 Rate9.02%9.02%9.02%
Growth Rate1.21%2.21%3.21%
Year 1 PV (M)342.30345.69349.07
Year 2 PV (M)465.76475.01484.35
Year 3 PV (M)569.75586.81604.20
Year 4 PV (M)656.44682.78709.89
Year 5 PV (M)727.77764.45802.58
PV of Terminal Value (M)12,794.2713,438.9814,109.42
Equity Value (M)15,556.3116,293.7117,059.52
Shares Outstanding (M)569.20569.20569.20
Fair Value$27.33$28.63$29.97
Upside / Downside-20.90%-17.15%-13.25%

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