Key Insights
- The projected fair value for News is US$32.96 based on 2 Stage Free Cash Flow to Equity
- News is estimated to be 25% undervalued based on current share price of US$24.70
- Our fair value estimate is 22% higher than News’ analyst price target of US$26.92
Today we will run through one way of estimating the intrinsic value of News Corporation (NASDAQ:NWSA) by estimating the company’s future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it’s not too difficult to follow, as you’ll see from our example!
Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
View our latest analysis for News
The Method
We use what is known as a 2-stage model, which…
