Intrinsic value of 21st Century Fox Cl B - FOX

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$27.20

  Intrinsic Value

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  Value-price divergence*

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$27.20

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of FOX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 49.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -5.73
  4.60
  4.64
  4.68
  4.71
  4.74
  4.76
  4.79
  4.81
  4.83
  4.85
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
Revenue, $m
  27,326
  28,583
  29,909
  31,308
  32,782
  34,335
  35,971
  37,693
  39,505
  41,412
  43,419
  45,529
  47,749
  50,082
  52,535
  55,114
  57,824
  60,673
  63,666
  66,811
  70,115
  73,587
  77,234
  81,065
  85,090
  89,317
  93,757
  98,421
  103,319
  108,464
  113,866
Variable operating expenses, $m
 
  18,806
  19,620
  20,478
  21,382
  22,334
  23,338
  24,394
  25,506
  26,676
  27,907
  27,928
  29,289
  30,721
  32,225
  33,807
  35,470
  37,217
  39,053
  40,982
  43,009
  45,138
  47,376
  49,726
  52,194
  54,787
  57,511
  60,372
  63,376
  66,532
  69,846
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  23,172
  18,806
  19,620
  20,478
  21,382
  22,334
  23,338
  24,394
  25,506
  26,676
  27,907
  27,928
  29,289
  30,721
  32,225
  33,807
  35,470
  37,217
  39,053
  40,982
  43,009
  45,138
  47,376
  49,726
  52,194
  54,787
  57,511
  60,372
  63,376
  66,532
  69,846
Operating income, $m
  4,154
  9,777
  10,290
  10,830
  11,400
  12,000
  12,633
  13,299
  13,999
  14,737
  15,512
  17,601
  18,459
  19,362
  20,310
  21,307
  22,355
  23,456
  24,613
  25,829
  27,106
  28,448
  29,858
  31,340
  32,895
  34,530
  36,246
  38,049
  39,943
  41,932
  44,020
EBITDA, $m
  4,684
  11,338
  11,864
  12,419
  13,003
  13,619
  14,268
  14,951
  15,670
  16,427
  17,223
  18,060
  18,940
  19,866
  20,839
  21,862
  22,937
  24,067
  25,254
  26,501
  27,812
  29,189
  30,636
  32,156
  33,752
  35,429
  37,190
  39,040
  40,983
  43,024
  45,167
Interest expense (income), $m
  0
  669
  725
  783
  844
  908
  976
  1,047
  1,123
  1,202
  1,285
  1,373
  1,465
  1,562
  1,664
  1,771
  1,884
  2,002
  2,127
  2,258
  2,395
  2,539
  2,691
  2,850
  3,018
  3,194
  3,378
  3,572
  3,776
  3,990
  4,215
Earnings before tax, $m
  4,154
  9,107
  9,565
  10,048
  10,556
  11,092
  11,657
  12,251
  12,877
  13,535
  14,227
  16,229
  16,994
  17,800
  18,646
  19,536
  20,471
  21,454
  22,486
  23,571
  24,711
  25,909
  27,167
  28,489
  29,878
  31,336
  32,868
  34,477
  36,167
  37,941
  39,805
Tax expense, $m
  1,130
  2,459
  2,583
  2,713
  2,850
  2,995
  3,147
  3,308
  3,477
  3,654
  3,841
  4,382
  4,588
  4,806
  5,034
  5,275
  5,527
  5,792
  6,071
  6,364
  6,672
  6,995
  7,335
  7,692
  8,067
  8,461
  8,874
  9,309
  9,765
  10,244
  10,747
Net income, $m
  2,755
  6,648
  6,982
  7,335
  7,706
  8,097
  8,510
  8,943
  9,400
  9,880
  10,386
  11,847
  12,406
  12,994
  13,612
  14,261
  14,944
  15,661
  16,415
  17,207
  18,039
  18,914
  19,832
  20,797
  21,811
  22,875
  23,994
  25,168
  26,402
  27,697
  29,058

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  4,424
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  48,193
  45,806
  47,931
  50,173
  52,535
  55,024
  57,645
  60,405
  63,310
  66,366
  69,582
  72,964
  76,520
  80,260
  84,191
  88,324
  92,667
  97,232
  102,028
  107,069
  112,364
  117,928
  123,773
  129,912
  136,362
  143,137
  150,252
  157,726
  165,576
  173,820
  182,478
Adjusted assets (=assets-cash), $m
  43,769
  45,806
  47,931
  50,173
  52,535
  55,024
  57,645
  60,405
  63,310
  66,366
  69,582
  72,964
  76,520
  80,260
  84,191
  88,324
  92,667
  97,232
  102,028
  107,069
  112,364
  117,928
  123,773
  129,912
  136,362
  143,137
  150,252
  157,726
  165,576
  173,820
  182,478
Revenue / Adjusted assets
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
  0.624
Average production assets, $m
  8,256
  8,632
  9,033
  9,455
  9,900
  10,369
  10,863
  11,383
  11,931
  12,507
  13,113
  13,750
  14,420
  15,125
  15,866
  16,644
  17,463
  18,323
  19,227
  20,177
  21,175
  22,223
  23,325
  24,482
  25,697
  26,974
  28,315
  29,723
  31,202
  32,756
  34,388
Working capital, $m
  7,881
  4,059
  4,247
  4,446
  4,655
  4,876
  5,108
  5,352
  5,610
  5,881
  6,165
  6,465
  6,780
  7,112
  7,460
  7,826
  8,211
  8,616
  9,041
  9,487
  9,956
  10,449
  10,967
  11,511
  12,083
  12,683
  13,314
  13,976
  14,671
  15,402
  16,169
Total debt, $m
  19,553
  20,704
  22,360
  24,106
  25,946
  27,885
  29,927
  32,076
  34,339
  36,720
  39,225
  41,860
  44,630
  47,543
  50,606
  53,825
  57,209
  60,765
  64,501
  68,427
  72,553
  76,887
  81,440
  86,223
  91,247
  96,524
  102,068
  107,890
  114,004
  120,427
  127,171
Total liabilities, $m
  34,532
  35,683
  37,339
  39,085
  40,925
  42,864
  44,906
  47,055
  49,318
  51,699
  54,204
  56,839
  59,609
  62,522
  65,585
  68,804
  72,188
  75,744
  79,480
  83,406
  87,532
  91,866
  96,419
  101,202
  106,226
  111,503
  117,047
  122,869
  128,983
  135,406
  142,150
Total equity, $m
  13,661
  10,123
  10,593
  11,088
  11,610
  12,160
  12,740
  13,349
  13,991
  14,667
  15,378
  16,125
  16,911
  17,737
  18,606
  19,520
  20,479
  21,488
  22,548
  23,662
  24,832
  26,062
  27,354
  28,711
  30,136
  31,633
  33,206
  34,857
  36,592
  38,414
  40,328
Total liabilities and equity, $m
  48,193
  45,806
  47,932
  50,173
  52,535
  55,024
  57,646
  60,404
  63,309
  66,366
  69,582
  72,964
  76,520
  80,259
  84,191
  88,324
  92,667
  97,232
  102,028
  107,068
  112,364
  117,928
  123,773
  129,913
  136,362
  143,136
  150,253
  157,726
  165,575
  173,820
  182,478
Debt-to-equity ratio
  1.431
  2.050
  2.110
  2.170
  2.230
  2.290
  2.350
  2.400
  2.450
  2.500
  2.550
  2.600
  2.640
  2.680
  2.720
  2.760
  2.790
  2.830
  2.860
  2.890
  2.920
  2.950
  2.980
  3.000
  3.030
  3.050
  3.070
  3.100
  3.120
  3.130
  3.150
Adjusted equity ratio
  0.211
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221
  0.221

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,755
  6,648
  6,982
  7,335
  7,706
  8,097
  8,510
  8,943
  9,400
  9,880
  10,386
  11,847
  12,406
  12,994
  13,612
  14,261
  14,944
  15,661
  16,415
  17,207
  18,039
  18,914
  19,832
  20,797
  21,811
  22,875
  23,994
  25,168
  26,402
  27,697
  29,058
Depreciation, amort., depletion, $m
  530
  1,561
  1,574
  1,588
  1,603
  1,619
  1,635
  1,653
  1,671
  1,690
  1,710
  458
  481
  504
  529
  555
  582
  611
  641
  673
  706
  741
  777
  816
  857
  899
  944
  991
  1,040
  1,092
  1,146
Funds from operations, $m
  1,513
  8,209
  8,557
  8,923
  9,309
  9,716
  10,145
  10,596
  11,071
  11,571
  12,096
  12,305
  12,887
  13,498
  14,140
  14,816
  15,526
  16,272
  17,056
  17,880
  18,745
  19,654
  20,610
  21,613
  22,667
  23,774
  24,937
  26,159
  27,442
  28,789
  30,204
Change in working capital, $m
  -1,515
  178
  188
  199
  209
  221
  232
  245
  257
  271
  285
  300
  315
  331
  348
  366
  385
  404
  425
  447
  469
  493
  518
  544
  571
  600
  631
  662
  696
  730
  767
Cash from operations, $m
  3,028
  8,031
  8,368
  8,725
  9,100
  9,496
  9,913
  10,352
  10,814
  11,300
  11,811
  12,006
  12,571
  13,166
  13,792
  14,450
  15,141
  15,867
  16,631
  17,433
  18,276
  19,161
  20,092
  21,069
  22,096
  23,174
  24,307
  25,497
  26,746
  28,059
  29,437
Maintenance CAPEX, $m
  0
  -275
  -288
  -301
  -315
  -330
  -346
  -362
  -379
  -398
  -417
  -437
  -458
  -481
  -504
  -529
  -555
  -582
  -611
  -641
  -673
  -706
  -741
  -777
  -816
  -857
  -899
  -944
  -991
  -1,040
  -1,092
New CAPEX, $m
  -263
  -377
  -401
  -422
  -445
  -469
  -494
  -520
  -547
  -576
  -606
  -637
  -670
  -705
  -741
  -779
  -819
  -860
  -904
  -950
  -998
  -1,048
  -1,101
  -1,157
  -1,215
  -1,277
  -1,341
  -1,408
  -1,479
  -1,554
  -1,632
Cash from investing activities, $m
  -1,638
  -652
  -689
  -723
  -760
  -799
  -840
  -882
  -926
  -974
  -1,023
  -1,074
  -1,128
  -1,186
  -1,245
  -1,308
  -1,374
  -1,442
  -1,515
  -1,591
  -1,671
  -1,754
  -1,842
  -1,934
  -2,031
  -2,134
  -2,240
  -2,352
  -2,470
  -2,594
  -2,724
Free cash flow, $m
  1,390
  7,379
  7,680
  8,001
  8,340
  8,697
  9,073
  9,469
  9,887
  10,326
  10,788
  10,931
  11,443
  11,981
  12,547
  13,142
  13,768
  14,425
  15,116
  15,842
  16,605
  17,407
  18,250
  19,135
  20,064
  21,041
  22,067
  23,144
  24,276
  25,465
  26,714
Issuance/(repayment) of debt, $m
  673
  1,578
  1,656
  1,746
  1,840
  1,939
  2,042
  2,150
  2,263
  2,381
  2,505
  2,635
  2,771
  2,913
  3,063
  3,219
  3,384
  3,556
  3,737
  3,926
  4,125
  4,334
  4,553
  4,783
  5,024
  5,277
  5,543
  5,822
  6,115
  6,422
  6,745
Issuance/(repurchase) of shares, $m
  -4,892
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -4,509
  1,578
  1,656
  1,746
  1,840
  1,939
  2,042
  2,150
  2,263
  2,381
  2,505
  2,635
  2,771
  2,913
  3,063
  3,219
  3,384
  3,556
  3,737
  3,926
  4,125
  4,334
  4,553
  4,783
  5,024
  5,277
  5,543
  5,822
  6,115
  6,422
  6,745
Total cash flow (excl. dividends), $m
  -3,183
  8,957
  9,336
  9,747
  10,180
  10,636
  11,115
  11,619
  12,149
  12,707
  13,293
  13,566
  14,213
  14,894
  15,610
  16,361
  17,151
  17,981
  18,853
  19,769
  20,731
  21,741
  22,803
  23,918
  25,089
  26,318
  27,610
  28,966
  30,391
  31,887
  33,458
Retained Cash Flow (-), $m
  3,559
  -459
  -470
  -495
  -522
  -550
  -579
  -610
  -642
  -675
  -711
  -747
  -786
  -826
  -869
  -913
  -960
  -1,009
  -1,060
  -1,114
  -1,170
  -1,230
  -1,292
  -1,357
  -1,425
  -1,497
  -1,573
  -1,652
  -1,735
  -1,822
  -1,913
Prev. year cash balance distribution, $m
 
  3,997
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  12,495
  8,866
  9,252
  9,658
  10,086
  10,536
  11,009
  11,508
  12,032
  12,583
  12,818
  13,427
  14,068
  14,741
  15,448
  16,191
  16,972
  17,793
  18,655
  19,560
  20,512
  21,511
  22,561
  23,663
  24,821
  26,037
  27,315
  28,656
  30,065
  31,545
Discount rate, %
 
  6.90
  7.25
  7.61
  7.99
  8.39
  8.81
  9.25
  9.71
  10.19
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.61
  17.44
  18.31
  19.22
  20.18
  21.19
  22.25
  23.37
  24.53
  25.76
  27.05
  28.40
PV of cash for distribution, $m
 
  11,688
  7,709
  7,425
  7,102
  6,742
  6,349
  5,928
  5,483
  5,022
  4,551
  3,972
  3,521
  3,081
  2,660
  2,263
  1,896
  1,563
  1,266
  1,007
  786
  601
  449
  329
  235
  163
  111
  73
  47
  29
  17
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Twenty-First Century Fox, Inc., together with its subsidiaries, operates as a diversified media and entertainment company in the United States, the United Kingdom, Continental Europe, Asia, Latin America, and internationally. It operates through Cable Network Programming; Television; Filmed Entertainment; and Other, Corporate and Eliminations segments. The company produces and licenses news, sports, movie, and general and factual entertainment programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunications companies, and online video distributors. It also broadcasts network programming; and operates 28 broadcast television stations, including 11 duopolies in the United States. In addition, the company produces and acquires live-action and animated motion pictures for distribution and licensing in various formats and entertainment media, as well as produces and licenses television programming worldwide. Further, it offers video advertising services, including consumer engagement and on-demand marketing campaigns; and operates two San Francisco-Bay area television stations. The company was formerly known as News Corporation. Twenty-First Century Fox, Inc. was founded in 1922 and is headquartered in New York, New York.

FINANCIAL RATIOS  of  21st Century Fox Cl B (FOX)

Valuation Ratios
P/E Ratio 18.5
Price to Sales 1.9
Price to Book 3.7
Price to Tangible Book
Price to Cash Flow 16.8
Price to Free Cash Flow 18.4
Growth Rates
Sales Growth Rate -5.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -38%
Cap. Spend. - 3 Yr. Gr. Rate -15.8%
Financial Strength
Quick Ratio 10
Current Ratio 0.1
LT Debt to Equity 140%
Total Debt to Equity 143.1%
Interest Coverage 0
Management Effectiveness
Return On Assets 5.6%
Ret/ On Assets - 3 Yr. Avg. 11.2%
Return On Total Capital 7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 14.6%
Return On Equity 17.8%
Return On Equity - 3 Yr. Avg. 30.7%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 37.3%
Gross Margin - 3 Yr. Avg. 35.7%
EBITDA Margin 17.1%
EBITDA Margin - 3 Yr. Avg. 27.1%
Operating Margin 15.2%
Oper. Margin - 3 Yr. Avg. 21.8%
Pre-Tax Margin 15.2%
Pre-Tax Margin - 3 Yr. Avg. 21.8%
Net Profit Margin 10.1%
Net Profit Margin - 3 Yr. Avg. 17.6%
Effective Tax Rate 27.2%
Eff/ Tax Rate - 3 Yr. Avg. 21.4%
Payout Ratio 29.8%

FOX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FOX stock intrinsic value calculation we used $27326 million for the last fiscal year's total revenue generated by 21st Century Fox Cl B. The default revenue input number comes from 2016 income statement of 21st Century Fox Cl B. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our FOX stock valuation model: a) initial revenue growth rate of 4.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.9%, whose default value for FOX is calculated based on our internal credit rating of 21st Century Fox Cl B, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of 21st Century Fox Cl B.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of FOX stock the variable cost ratio is equal to 66%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for FOX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for 21st Century Fox Cl B.

Corporate tax rate of 27% is the nominal tax rate for 21st Century Fox Cl B. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the FOX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for FOX are equal to 30.2%.

Life of production assets of 39.4 years is the average useful life of capital assets used in 21st Century Fox Cl B operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for FOX is equal to 14.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $13661 million for 21st Century Fox Cl B - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1830.21 million for 21st Century Fox Cl B is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of 21st Century Fox Cl B at the current share price and the inputted number of shares is $49.8 billion.


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COMPANY NEWS

▶ The Biggest Risk Facing 21st Century Fox, Inc.   [Jul-20-17 10:16AM  Motley Fool]
▶ Hulu adding 3,000 episodes from Fox   [Jul-19-17 05:15PM  American City Business Journals]
▶ Can Cable Programmers Keep Raising Prices?   [Jul-18-17 05:34PM  Motley Fool]
▶ Yahoo Finance Live: Market Movers - Jul 17th, 2017   [07:20AM  Yahoo Finance Video]
▶ Exploring 21st Century Foxs Financial Metrics   [09:05AM  Market Realist]
▶ A Look at 21st Century Foxs Valuation Metrics   [07:35AM  Market Realist]
▶ How Do 21st Century Foxs Technical Indicators Stack Up?   [Jul-12-17 10:36AM  Market Realist]
▶ Why Facebook Wants to Stream FIFA World Cup Soccer in 2018   [Jul-11-17 05:39PM  Market Realist]
▶ [$$] Fox News Holds On to No. 1 as MSNBC Rises   [Jul-09-17 08:59PM  The Wall Street Journal]
▶ Will 21st Century Foxs Ad Business Continue Its Strong Run?   [Jul-07-17 04:40PM  Market Realist]
▶ Fox Business Anchor Suspended   [09:21AM  TheStreet.com]
▶ Fox Business host suspended during investigation   [Jul-06-17 10:52PM  Associated Press]
▶ [$$] Fox Sports Fires Head of Programming   [12:13AM  The Wall Street Journal]
▶ [$$] Fox Sports Fires Head of Programming   [05:14PM  The Wall Street Journal]
▶ 6 Most Important Business Stories Today   [05:13AM  24/7 Wall St.]
▶ [$$] Foxs Bid for Sky Set for More U.K. Scrutiny   [12:17AM  The Wall Street Journal]
Stock chart of FOX Financial statements of FOX Annual reports of FOX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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