Intrinsic value of 21st Century Fox Cl B - FOX

Previous Close

$36.37

  Intrinsic Value

$51.11

stock screener

  Rating & Target

buy

+41%

Previous close

$36.37

 
Intrinsic value

$51.11

 
Up/down potential

+41%

 
Rating

buy

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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.30
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.24
  6.12
  6.01
  5.91
  5.82
  5.73
  5.66
  5.59
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
Revenue, $m
  28,500
  30,666
  32,917
  35,256
  37,687
  40,214
  42,842
  45,576
  48,422
  51,385
  54,472
  57,689
  61,045
  64,545
  68,199
  72,014
  76,001
  80,167
  84,523
  89,079
  93,846
  98,834
  104,057
  109,527
  115,255
  121,257
  127,546
  134,138
  141,048
  148,292
  155,888
Variable operating expenses, $m
 
  16,585
  17,709
  18,876
  20,089
  21,351
  22,662
  24,027
  25,447
  26,926
  28,467
  28,794
  30,468
  32,215
  34,039
  35,944
  37,933
  40,013
  42,187
  44,461
  46,840
  49,330
  51,937
  54,666
  57,526
  60,521
  63,660
  66,950
  70,399
  74,015
  77,806
Fixed operating expenses, $m
 
  8,719
  8,937
  9,160
  9,389
  9,624
  9,864
  10,111
  10,364
  10,623
  10,888
  11,161
  11,440
  11,726
  12,019
  12,319
  12,627
  12,943
  13,266
  13,598
  13,938
  14,287
  14,644
  15,010
  15,385
  15,770
  16,164
  16,568
  16,982
  17,407
  17,842
Total operating expenses, $m
  23,811
  25,304
  26,646
  28,036
  29,478
  30,975
  32,526
  34,138
  35,811
  37,549
  39,355
  39,955
  41,908
  43,941
  46,058
  48,263
  50,560
  52,956
  55,453
  58,059
  60,778
  63,617
  66,581
  69,676
  72,911
  76,291
  79,824
  83,518
  87,381
  91,422
  95,648
Operating income, $m
  4,689
  5,362
  6,272
  7,220
  8,209
  9,240
  10,316
  11,438
  12,611
  13,836
  15,117
  17,735
  19,137
  20,604
  22,141
  23,752
  25,440
  27,211
  29,070
  31,020
  33,068
  35,218
  37,477
  39,850
  42,345
  44,966
  47,722
  50,620
  53,666
  56,870
  60,240
EBITDA, $m
  5,242
  6,943
  7,875
  8,846
  9,858
  10,914
  12,016
  13,166
  14,366
  15,620
  16,931
  18,302
  19,737
  21,239
  22,812
  24,460
  26,188
  28,000
  29,901
  31,896
  33,990
  36,190
  38,500
  40,927
  43,478
  46,159
  48,976
  51,939
  55,053
  58,329
  61,773
Interest expense (income), $m
  0
  681
  772
  867
  966
  1,069
  1,176
  1,288
  1,404
  1,524
  1,650
  1,781
  1,917
  2,059
  2,207
  2,362
  2,524
  2,693
  2,870
  3,054
  3,247
  3,449
  3,661
  3,882
  4,114
  4,357
  4,611
  4,878
  5,157
  5,450
  5,757
Earnings before tax, $m
  4,689
  4,681
  5,500
  6,353
  7,242
  8,171
  9,139
  10,151
  11,207
  12,312
  13,467
  15,955
  17,220
  18,545
  19,933
  21,389
  22,916
  24,518
  26,200
  27,966
  29,820
  31,769
  33,816
  35,968
  38,231
  40,609
  43,111
  45,742
  48,509
  51,420
  54,483
Tax expense, $m
  1,419
  1,264
  1,485
  1,715
  1,955
  2,206
  2,468
  2,741
  3,026
  3,324
  3,636
  4,308
  4,649
  5,007
  5,382
  5,775
  6,187
  6,620
  7,074
  7,551
  8,052
  8,578
  9,130
  9,711
  10,322
  10,965
  11,640
  12,350
  13,098
  13,884
  14,710
Net income, $m
  2,952
  3,417
  4,015
  4,638
  5,287
  5,965
  6,672
  7,410
  8,181
  8,988
  9,831
  11,647
  12,570
  13,538
  14,551
  15,614
  16,729
  17,898
  19,126
  20,415
  21,769
  23,191
  24,686
  26,257
  27,908
  29,645
  31,471
  33,392
  35,412
  37,537
  39,773

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  6,163
  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
  50,724
  47,916
  51,433
  55,087
  58,886
  62,835
  66,941
  71,213
  75,659
  80,289
  85,112
  90,140
  95,382
  100,852
  106,561
  112,523
  118,751
  125,261
  132,067
  139,186
  146,634
  154,429
  162,590
  171,135
  180,087
  189,464
  199,291
  209,591
  220,387
  231,706
  243,575
Adjusted assets (=assets-cash), $m
  44,561
  47,916
  51,433
  55,087
  58,886
  62,835
  66,941
  71,213
  75,659
  80,289
  85,112
  90,140
  95,382
  100,852
  106,561
  112,523
  118,751
  125,261
  132,067
  139,186
  146,634
  154,429
  162,590
  171,135
  180,087
  189,464
  199,291
  209,591
  220,387
  231,706
  243,575
Revenue / Adjusted assets
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
Average production assets, $m
  8,412
  9,046
  9,710
  10,401
  11,118
  11,863
  12,638
  13,445
  14,284
  15,159
  16,069
  17,018
  18,008
  19,041
  20,119
  21,244
  22,420
  23,649
  24,934
  26,278
  27,684
  29,156
  30,697
  32,310
  34,000
  35,771
  37,626
  39,571
  41,609
  43,746
  45,987
Working capital, $m
  9,048
  3,588
  3,851
  4,125
  4,409
  4,705
  5,013
  5,332
  5,665
  6,012
  6,373
  6,750
  7,142
  7,552
  7,979
  8,426
  8,892
  9,380
  9,889
  10,422
  10,980
  11,564
  12,175
  12,815
  13,485
  14,187
  14,923
  15,694
  16,503
  17,350
  18,239
Total debt, $m
  19,913
  22,046
  24,771
  27,604
  30,548
  33,608
  36,790
  40,101
  43,547
  47,135
  50,873
  54,769
  58,832
  63,071
  67,496
  72,116
  76,943
  81,988
  87,263
  92,780
  98,552
  104,593
  110,918
  117,541
  124,478
  131,746
  139,362
  147,344
  155,711
  164,483
  173,682
Total liabilities, $m
  35,002
  37,135
  39,860
  42,693
  45,637
  48,697
  51,879
  55,190
  58,636
  62,224
  65,962
  69,858
  73,921
  78,160
  82,585
  87,205
  92,032
  97,077
  102,352
  107,869
  113,641
  119,682
  126,007
  132,630
  139,567
  146,835
  154,451
  162,433
  170,800
  179,572
  188,771
Total equity, $m
  15,722
  10,781
  11,572
  12,395
  13,249
  14,138
  15,062
  16,023
  17,023
  18,065
  19,150
  20,281
  21,461
  22,692
  23,976
  25,318
  26,719
  28,184
  29,715
  31,317
  32,993
  34,746
  36,583
  38,505
  40,519
  42,629
  44,841
  47,158
  49,587
  52,134
  54,804
Total liabilities and equity, $m
  50,724
  47,916
  51,432
  55,088
  58,886
  62,835
  66,941
  71,213
  75,659
  80,289
  85,112
  90,139
  95,382
  100,852
  106,561
  112,523
  118,751
  125,261
  132,067
  139,186
  146,634
  154,428
  162,590
  171,135
  180,086
  189,464
  199,292
  209,591
  220,387
  231,706
  243,575
Debt-to-equity ratio
  1.267
  2.040
  2.140
  2.230
  2.310
  2.380
  2.440
  2.500
  2.560
  2.610
  2.660
  2.700
  2.740
  2.780
  2.820
  2.850
  2.880
  2.910
  2.940
  2.960
  2.990
  3.010
  3.030
  3.050
  3.070
  3.090
  3.110
  3.120
  3.140
  3.160
  3.170
Adjusted equity ratio
  0.215
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,952
  3,417
  4,015
  4,638
  5,287
  5,965
  6,672
  7,410
  8,181
  8,988
  9,831
  11,647
  12,570
  13,538
  14,551
  15,614
  16,729
  17,898
  19,126
  20,415
  21,769
  23,191
  24,686
  26,257
  27,908
  29,645
  31,471
  33,392
  35,412
  37,537
  39,773
Depreciation, amort., depletion, $m
  553
  1,581
  1,603
  1,626
  1,650
  1,675
  1,700
  1,727
  1,755
  1,784
  1,815
  567
  600
  635
  671
  708
  747
  788
  831
  876
  923
  972
  1,023
  1,077
  1,133
  1,192
  1,254
  1,319
  1,387
  1,458
  1,533
Funds from operations, $m
  2,756
  4,998
  5,618
  6,264
  6,937
  7,639
  8,372
  9,137
  9,937
  10,772
  11,646
  12,214
  13,171
  14,172
  15,222
  16,322
  17,476
  18,687
  19,957
  21,291
  22,692
  24,163
  25,709
  27,334
  29,042
  30,837
  32,725
  34,711
  36,799
  38,995
  41,306
Change in working capital, $m
  -1,001
  253
  263
  274
  284
  296
  307
  320
  333
  347
  361
  376
  393
  410
  427
  446
  466
  487
  510
  533
  558
  584
  611
  640
  670
  702
  736
  771
  808
  848
  889
Cash from operations, $m
  3,757
  4,745
  5,355
  5,990
  6,652
  7,343
  8,065
  8,817
  9,604
  10,425
  11,284
  11,838
  12,778
  13,763
  14,795
  15,876
  17,010
  18,199
  19,448
  20,758
  22,134
  23,579
  25,098
  26,694
  28,371
  30,135
  31,989
  33,939
  35,990
  38,148
  40,417
Maintenance CAPEX, $m
  0
  -280
  -302
  -324
  -347
  -371
  -395
  -421
  -448
  -476
  -505
  -536
  -567
  -600
  -635
  -671
  -708
  -747
  -788
  -831
  -876
  -923
  -972
  -1,023
  -1,077
  -1,133
  -1,192
  -1,254
  -1,319
  -1,387
  -1,458
New CAPEX, $m
  -377
  -634
  -664
  -690
  -717
  -746
  -775
  -807
  -839
  -874
  -911
  -949
  -990
  -1,033
  -1,078
  -1,126
  -1,176
  -1,229
  -1,285
  -1,344
  -1,406
  -1,472
  -1,541
  -1,613
  -1,690
  -1,771
  -1,855
  -1,945
  -2,038
  -2,137
  -2,241
Cash from investing activities, $m
  -752
  -914
  -966
  -1,014
  -1,064
  -1,117
  -1,170
  -1,228
  -1,287
  -1,350
  -1,416
  -1,485
  -1,557
  -1,633
  -1,713
  -1,797
  -1,884
  -1,976
  -2,073
  -2,175
  -2,282
  -2,395
  -2,513
  -2,636
  -2,767
  -2,904
  -3,047
  -3,199
  -3,357
  -3,524
  -3,699
Free cash flow, $m
  3,005
  3,830
  4,389
  4,976
  5,589
  6,227
  6,894
  7,590
  8,316
  9,075
  9,869
  10,353
  11,221
  12,130
  13,082
  14,080
  15,126
  16,223
  17,374
  18,583
  19,852
  21,185
  22,585
  24,057
  25,604
  27,231
  28,942
  30,741
  32,633
  34,624
  36,718
Issuance/(repayment) of debt, $m
  345
  2,590
  2,726
  2,832
  2,944
  3,060
  3,182
  3,311
  3,446
  3,588
  3,738
  3,896
  4,063
  4,239
  4,425
  4,620
  4,827
  5,045
  5,275
  5,517
  5,772
  6,041
  6,325
  6,623
  6,937
  7,268
  7,616
  7,982
  8,367
  8,772
  9,199
Issuance/(repurchase) of shares, $m
  -619
  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  
  -338
  2,590
  2,726
  2,832
  2,944
  3,060
  3,182
  3,311
  3,446
  3,588
  3,738
  3,896
  4,063
  4,239
  4,425
  4,620
  4,827
  5,045
  5,275
  5,517
  5,772
  6,041
  6,325
  6,623
  6,937
  7,268
  7,616
  7,982
  8,367
  8,772
  9,199
Total cash flow (excl. dividends), $m
  2,682
  6,419
  7,115
  7,809
  8,532
  9,288
  10,076
  10,900
  11,762
  12,663
  13,607
  14,249
  15,284
  16,369
  17,507
  18,700
  19,953
  21,268
  22,649
  24,100
  25,624
  27,226
  28,910
  30,680
  32,542
  34,499
  36,558
  38,723
  41,000
  43,396
  45,916
Retained Cash Flow (-), $m
  -2,061
  -765
  -791
  -822
  -855
  -888
  -924
  -961
  -1,000
  -1,042
  -1,085
  -1,131
  -1,180
  -1,231
  -1,285
  -1,341
  -1,401
  -1,465
  -1,531
  -1,602
  -1,676
  -1,754
  -1,836
  -1,923
  -2,014
  -2,110
  -2,211
  -2,317
  -2,429
  -2,547
  -2,671
Prev. year cash balance distribution, $m
 
  5,706
  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
 
  11,360
  6,323
  6,986
  7,678
  8,399
  9,152
  9,939
  10,762
  11,622
  12,521
  13,118
  14,104
  15,138
  16,222
  17,359
  18,551
  19,803
  21,118
  22,498
  23,948
  25,472
  27,074
  28,757
  30,528
  32,389
  34,346
  36,405
  38,571
  40,849
  43,246
Discount rate, %
 
  6.10
  6.41
  6.73
  7.06
  7.41
  7.79
  8.17
  8.58
  9.01
  9.46
  9.94
  10.43
  10.95
  11.50
  12.08
  12.68
  13.32
  13.98
  14.68
  15.41
  16.19
  16.99
  17.84
  18.74
  19.67
  20.66
  21.69
  22.77
  23.91
  25.11
PV of cash for distribution, $m
 
  10,707
  5,585
  5,747
  5,844
  5,874
  5,837
  5,734
  5,569
  5,345
  5,070
  4,627
  4,287
  3,919
  3,533
  3,139
  2,746
  2,365
  2,003
  1,667
  1,362
  1,091
  857
  659
  495
  363
  260
  182
  123
  81
  52
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. is a media and entertainment company. The Company's segments include Cable Network Programming; Television; Filmed Entertainment, and Other, Corporate and Eliminations. The Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution. The Television segment is engaged in the operation of broadcast television stations and the broadcasting of network programming in the United States. The Filmed Entertainment segment is engaged in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media, and the production and licensing of television programming around the world. The Other, Corporate and Eliminations segment consists primarily of corporate overhead and eliminations, and other businesses.

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

Valuation Ratios
P/E Ratio 22.8
Price to Sales 2.4
Price to Book 4.3
Price to Tangible Book
Price to Cash Flow 17.9
Price to Free Cash Flow 19.9
Growth Rates
Sales Growth Rate 4.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 43.3%
Cap. Spend. - 3 Yr. Gr. Rate -11.1%
Financial Strength
Quick Ratio 13
Current Ratio 0.1
LT Debt to Equity 123.8%
Total Debt to Equity 126.7%
Interest Coverage 0
Management Effectiveness
Return On Assets 6%
Ret/ On Assets - 3 Yr. Avg. 9.8%
Return On Total Capital 8.6%
Ret/ On T. Cap. - 3 Yr. Avg. 13.1%
Return On Equity 20.1%
Return On Equity - 3 Yr. Avg. 28.6%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 37.6%
Gross Margin - 3 Yr. Avg. 37%
EBITDA Margin 18.4%
EBITDA Margin - 3 Yr. Avg. 25.4%
Operating Margin 16.5%
Oper. Margin - 3 Yr. Avg. 21.9%
Pre-Tax Margin 16.5%
Pre-Tax Margin - 3 Yr. Avg. 21.9%
Net Profit Margin 10.4%
Net Profit Margin - 3 Yr. Avg. 16.4%
Effective Tax Rate 30.3%
Eff/ Tax Rate - 3 Yr. Avg. 23.4%
Payout Ratio 31.9%

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 $28500 million for the last fiscal year's total revenue generated by 21st Century Fox Cl B. The default revenue input number comes from 2017 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 7.6% 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 6.1%, 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 54.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $8506 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 29.5%.

Life of production assets of 38.3 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 11.7%. 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 - $15722 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 1862.84 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 $67.8 billion.

RELATED COMPANIES Price Int.Val. Rating
TWX Time Warner 92.05 165.28  str.buy
CMCSA Comcast Cl A 42.44 26.39  sell
DIS Walt Disney 112.47 106.44  hold
VIAB Viacom Cl B 33.76 96.87  str.buy
CBS CBS Cl B 58.83 50.68  hold
DISCA Discovery Comm 24.33 66.59  str.buy
QVCA Liberty Intera 26.85 8.57  str.sell
NFLX Netflix 221.23 103.29  sell
SNI Scripps Networ 87.87 65.39  sell
AMCX AMC Networks C 53.30 36.61  sell

COMPANY NEWS

▶ 3 Stocks You Can Keep Forever   [08:42AM  Motley Fool]
▶ Fox TV Chair Dana Walden wont take Amazon Studios job   [Jan-11-18 03:55PM  American City Business Journals]
▶ Fox close to buying 10 Sinclair TV stations   [Jan-10-18 02:50PM  American City Business Journals]
▶ [$$] Fox Nears Deal to Buy Local Stations From Sinclair   [12:11PM  The Wall Street Journal]
▶ And the Golden Globes go to streaming   [01:35PM  American City Business Journals]
▶ 3 Retail Trends Investors Should Watch in 2018   [Jan-05-18 12:15PM  Motley Fool]
▶ The Latest: Fox's 'New Girl' final season begins April 10   [Jan-04-18 10:57PM  Associated Press]
▶ 2 Great Hollywood Stocks to Buy Right Now   [Jan-03-18 08:41PM  Motley Fool]
▶ Why Roku, Inc. Stock Jumped 17.9% in December   [Dec-31-17 07:32PM  Motley Fool]
▶ 15 of the Best Mergers & Acquisitions of 2017   [Dec-29-17 11:39AM  Zacks]
▶ How Roku Could Win Big From the Disney-Fox Deal   [Dec-28-17 09:59PM  Motley Fool]
▶ 3 Market Predictions for 2018   [Dec-27-17 03:31PM  Motley Fool]
▶ Disneys acquisition of Fox is Hollywoods biggest deal of the year and the next   [Dec-26-17 06:55PM  American City Business Journals]
▶ [$$] Disney-Fox Deal Gives Glimmer of Hope for Movie Lovers   [02:13PM  The Wall Street Journal]
▶ 1 Reason Not to Love the Disney-Fox Deal   [10:47AM  Motley Fool]
▶ Disney Will Soon Have 3 Ways to Compete With Netflix   [Dec-25-17 05:43PM  Motley Fool]
▶ Disney Likely to Be Top Studio of 2017   [08:19AM  24/7 Wall St.]
▶ The Top 4 AT&T Shareholders (T)   [10:11AM  Investopedia]
Financial statements 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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.