Twenty-First Century Fox (FOX:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Twenty-First Century Fox(FOX:NAS)

Consumer Cyclical:Media-Diversified

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$47.47 (USD) 08/11/2018

Weighted Valuation
$48.89 (USD)

Overall Rating
Fairly valued to slightly Undervalued by 3.0%

Valuation Models Analyst Consensus: $49.33 (USD)
(in order of importance) Discounted Cash Flow: $52.20 (USD)
Adjusted Book Value: $40.93 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (FOX:NAS USD)

Price 0.00
Range 0.00 – 0.00
52 week 0.00 – 0.00
Open 0.00
Vol / Avg. 0/0
Mkt cap 0
P/E 0.00
Div/yield 0.00/0.00
EPS 0.00
Shares 0
Beta 0.00

Company Description

Twenty-First Century Fox Inc is a media conglomerate with a wide range of assets: a film studio, which creates television programs and movies; broadcast television, including the Fox broadcast network and local TV stations in the U.S.; cable networks, which comprise over 300 channels around the world; and direct-broadcast satellite TV in the form of Sky, a satellite pay-tv provider in Europe. The company has four segments namely Cable Network Programming, Television, Filmed Entertainment and Other, Corporate and Eliminations. The company mostly earns from Cable Network Programming Segment.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for FOX:NAS

Using a discounted cash flow model we generated an intrinsic value of $52.20 (USD) for FOX:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

FOX:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $52.20 1% 5% 1% 5%
WACC (or Ke) 7.97 $68.19 $41.58
Terminal Growth Rate 3.00 $42.40 $66.95
Tax Rate 0.08 $56.51 $47.90
Cash Flow 9,067,914,000 $48.09 $56.32
Capital Expenditures -458,600,000 $52.02 $52.39
Long Term Debt 19,488,000,000 $52.73 $51.68

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $94.00 (USD) for FOX:NAS. We also generated a valuation of $78.15 (USD) using other metrics and comparables.
The comparable companies were Walt Disney (DIS:NYS) and Netflix (NFLX:NAS).

Company FOX:NAS End Date Value
Earnings/Share $2.63 (USD)
Book Value/Share $10.54 (USD)
Sales/Share $16.37 (USD)
Cash Flow/Share $2.28 (USD)
EBITDA/Share $3.36 (USD)
Price Based on Comps Adjustment Factor (%)
$160.72 (USD) -58.4
$158.03 (USD) -36.3
$99.38 (USD) -32.3
$17.85 (USD) -36.1
$154.34 (USD) 50.9
FOX:NAS Ratios Used Average Values DIS:NYS NFLX:NAS
18.75 PE Ratio 61.11 14.44 107.78
4.29 PB Ratio 14.99 3.71 26.27
2.76 PS Ratio 6.07 3.01 9.13
19.85 PCF Ratio 12.45 12.45 0.00
15.39 EV to EBITDA 45.98 10.70 81.26


Using a multiples approach we generated a valuation of  $40.51 (USD) for FOX:NAS

Company FOX:NAS End Date Value
Earnings/Share $2.63 (USD)
Book Value/Share $10.54 (USD)
Sales/Share $16.37 (USD)
Cash Flow/Share $2.28 (USD)
EBITDA/Share $3.36 (USD)
Price Based on Comps Adjustment Factor
$47.74 (USD) 0
$39.02 (USD) 0
$35.62 (USD) 0
$42.26 (USD) 0
$37.94 (USD) 0
Ratios Ratio Average
PE Ratio 18.15
PB Ratio 3.70
PS Ratio 2.18
PCF Ratio 18.57
EV to EBITDA 11.30

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  FOX:NAS for the last 10 years was  3.66

We ran the Adjusted Book Value for  FOX:NAS and generated a book value of  $11.17 (USD)
By multiplying these we get an adjusted valuation of  $40.93 (USD)

Analyst Data

In the Stockcalc database there are 6 analysts that provide a valuation for FOX:NAS. The 6 analysts have a concensus valuation for FOX:NAS for 2019 of $49.33 (USD).

FOX:NAS Twenty-First Century Fox

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 7 0 3.4444 Hold 2018-11-7

Current Price: 47.47 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 2.04 2.31 2.56
# EPS Analysts 9 6 3
Mean Revenue 31,662.60 33,362.50 35,256.30
# Revenue Analysts 7 4 3
Mean Target Price 49.33
Mean Cash Flow 2.41 2.67 2.98
Mean EBITDA 7,461.70 8,129.00 8,803.80
Mean Net Income 3,737.40 4,102.80 4,649.80
Mean Debt Outstanding 5,303.10 3,448.30 709.50
Mean Tax Rate 25.00
Mean Growth Rate 9.77
Mean Capital Expenditure 446.50 436.20 431.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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