Intrinsic value of 21st Century Fox Cl B - FOX

Previous Close

$30.22

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$30.22

 
Intrinsic value

$49.28

 
Up/down potential

+63%

 
Rating

str. buy

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

*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 56.7

 

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
  4.20
  4.28
  4.35
  4.42
  4.48
  4.53
  4.57
  4.62
  4.66
  4.69
  4.72
  4.75
  4.77
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
Revenue, $m
  27,326
  28,474
  29,692
  30,985
  32,353
  33,801
  35,331
  36,948
  38,654
  40,453
  42,351
  44,350
  46,456
  48,674
  51,009
  53,466
  56,051
  58,770
  61,631
  64,638
  67,800
  71,124
  74,618
  78,290
  82,149
  86,204
  90,465
  94,941
  99,644
  104,585
  109,775
Variable operating expenses, $m
 
  18,739
  19,487
  20,279
  21,119
  22,007
  22,946
  23,937
  24,984
  26,087
  27,251
  27,204
  28,496
  29,857
  31,289
  32,796
  34,382
  36,050
  37,804
  39,649
  41,589
  43,628
  45,771
  48,023
  50,391
  52,878
  55,492
  58,237
  61,122
  64,153
  67,336
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
  18,739
  19,487
  20,279
  21,119
  22,007
  22,946
  23,937
  24,984
  26,087
  27,251
  27,204
  28,496
  29,857
  31,289
  32,796
  34,382
  36,050
  37,804
  39,649
  41,589
  43,628
  45,771
  48,023
  50,391
  52,878
  55,492
  58,237
  61,122
  64,153
  67,336
Operating income, $m
  4,154
  9,735
  10,206
  10,705
  11,234
  11,794
  12,386
  13,011
  13,670
  14,366
  15,099
  17,146
  17,960
  18,817
  19,720
  20,670
  21,669
  22,720
  23,826
  24,989
  26,211
  27,496
  28,847
  30,267
  31,759
  33,326
  34,973
  36,704
  38,522
  40,432
  42,439
EBITDA, $m
  4,684
  11,294
  11,778
  12,290
  12,833
  13,408
  14,015
  14,656
  15,332
  16,046
  16,799
  17,592
  18,427
  19,307
  20,233
  21,208
  22,233
  23,312
  24,447
  25,640
  26,894
  28,212
  29,598
  31,055
  32,586
  34,194
  35,884
  37,660
  39,525
  41,485
  43,544
Interest expense (income), $m
  0
  669
  720
  773
  830
  889
  953
  1,019
  1,090
  1,165
  1,243
  1,326
  1,414
  1,506
  1,602
  1,705
  1,812
  1,925
  2,044
  2,169
  2,300
  2,438
  2,583
  2,736
  2,897
  3,065
  3,242
  3,429
  3,624
  3,830
  4,045
Earnings before tax, $m
  4,154
  9,065
  9,486
  9,932
  10,405
  10,905
  11,433
  11,991
  12,580
  13,201
  13,856
  15,819
  16,546
  17,312
  18,117
  18,965
  19,857
  20,796
  21,783
  22,820
  23,911
  25,058
  26,264
  27,531
  28,862
  30,261
  31,731
  33,276
  34,898
  36,603
  38,393
Tax expense, $m
  1,130
  2,448
  2,561
  2,682
  2,809
  2,944
  3,087
  3,238
  3,397
  3,564
  3,741
  4,271
  4,467
  4,674
  4,892
  5,121
  5,361
  5,615
  5,881
  6,161
  6,456
  6,766
  7,091
  7,433
  7,793
  8,171
  8,567
  8,984
  9,422
  9,883
  10,366
Net income, $m
  2,755
  6,618
  6,925
  7,250
  7,595
  7,960
  8,346
  8,753
  9,183
  9,637
  10,115
  11,548
  12,079
  12,637
  13,226
  13,845
  14,496
  15,181
  15,901
  16,659
  17,455
  18,292
  19,172
  20,097
  21,069
  22,091
  23,164
  24,291
  25,476
  26,720
  28,027

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
  45,631
  47,584
  49,655
  51,848
  54,168
  56,621
  59,211
  61,945
  64,829
  67,869
  71,074
  74,449
  78,003
  81,745
  85,682
  89,825
  94,183
  98,767
  103,587
  108,654
  113,981
  119,580
  125,465
  131,649
  138,148
  144,976
  152,150
  159,686
  167,604
  175,921
Adjusted assets (=assets-cash), $m
  43,769
  45,631
  47,584
  49,655
  51,848
  54,168
  56,621
  59,211
  61,945
  64,829
  67,869
  71,074
  74,449
  78,003
  81,745
  85,682
  89,825
  94,183
  98,767
  103,587
  108,654
  113,981
  119,580
  125,465
  131,649
  138,148
  144,976
  152,150
  159,686
  167,604
  175,921
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
  8,599
  8,967
  9,357
  9,771
  10,208
  10,670
  11,158
  11,673
  12,217
  12,790
  13,394
  14,030
  14,700
  15,405
  16,147
  16,927
  17,749
  18,612
  19,521
  20,476
  21,479
  22,535
  23,644
  24,809
  26,034
  27,320
  28,672
  30,093
  31,585
  33,152
Working capital, $m
  7,881
  4,043
  4,216
  4,400
  4,594
  4,800
  5,017
  5,247
  5,489
  5,744
  6,014
  6,298
  6,597
  6,912
  7,243
  7,592
  7,959
  8,345
  8,752
  9,179
  9,628
  10,100
  10,596
  11,117
  11,665
  12,241
  12,846
  13,482
  14,149
  14,851
  15,588
Total debt, $m
  19,553
  20,567
  22,089
  23,702
  25,411
  27,218
  29,129
  31,146
  33,276
  35,523
  37,891
  40,387
  43,017
  45,785
  48,700
  51,767
  54,995
  58,390
  61,960
  65,715
  69,662
  73,812
  78,174
  82,758
  87,576
  92,638
  97,957
  103,546
  109,417
  115,584
  122,063
Total liabilities, $m
  34,532
  35,546
  37,068
  38,681
  40,390
  42,197
  44,108
  46,125
  48,255
  50,502
  52,870
  55,366
  57,996
  60,764
  63,679
  66,746
  69,974
  73,369
  76,939
  80,694
  84,641
  88,791
  93,153
  97,737
  102,555
  107,617
  112,936
  118,525
  124,396
  130,563
  137,042
Total equity, $m
  13,661
  10,084
  10,516
  10,974
  11,458
  11,971
  12,513
  13,086
  13,690
  14,327
  14,999
  15,707
  16,453
  17,239
  18,066
  18,936
  19,851
  20,815
  21,827
  22,893
  24,013
  25,190
  26,427
  27,728
  29,095
  30,531
  32,040
  33,625
  35,291
  37,040
  38,879
Total liabilities and equity, $m
  48,193
  45,630
  47,584
  49,655
  51,848
  54,168
  56,621
  59,211
  61,945
  64,829
  67,869
  71,073
  74,449
  78,003
  81,745
  85,682
  89,825
  94,184
  98,766
  103,587
  108,654
  113,981
  119,580
  125,465
  131,650
  138,148
  144,976
  152,150
  159,687
  167,603
  175,921
Debt-to-equity ratio
  1.431
  2.040
  2.100
  2.160
  2.220
  2.270
  2.330
  2.380
  2.430
  2.480
  2.530
  2.570
  2.610
  2.660
  2.700
  2.730
  2.770
  2.810
  2.840
  2.870
  2.900
  2.930
  2.960
  2.980
  3.010
  3.030
  3.060
  3.080
  3.100
  3.120
  3.140
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
  6,618
  6,925
  7,250
  7,595
  7,960
  8,346
  8,753
  9,183
  9,637
  10,115
  11,548
  12,079
  12,637
  13,226
  13,845
  14,496
  15,181
  15,901
  16,659
  17,455
  18,292
  19,172
  20,097
  21,069
  22,091
  23,164
  24,291
  25,476
  26,720
  28,027
Depreciation, amort., depletion, $m
  530
  1,560
  1,572
  1,585
  1,599
  1,614
  1,629
  1,645
  1,662
  1,681
  1,700
  446
  468
  490
  513
  538
  564
  592
  620
  651
  683
  716
  751
  788
  827
  868
  911
  956
  1,003
  1,053
  1,105
Funds from operations, $m
  1,162
  8,177
  8,497
  8,836
  9,194
  9,574
  9,975
  10,399
  10,846
  11,317
  11,814
  11,995
  12,546
  13,127
  13,739
  14,383
  15,060
  15,772
  16,522
  17,309
  18,138
  19,008
  19,924
  20,885
  21,896
  22,958
  24,074
  25,247
  26,479
  27,773
  29,132
Change in working capital, $m
  -1,866
  163
  173
  183
  194
  206
  217
  230
  242
  256
  269
  284
  299
  315
  332
  349
  367
  386
  406
  427
  449
  472
  496
  521
  548
  576
  605
  636
  668
  702
  737
Cash from operations, $m
  3,028
  8,228
  8,324
  8,652
  9,000
  9,368
  9,758
  10,169
  10,604
  11,062
  11,545
  11,711
  12,247
  12,813
  13,408
  14,034
  14,693
  15,386
  16,116
  16,882
  17,689
  18,536
  19,427
  20,364
  21,348
  22,383
  23,469
  24,611
  25,811
  27,071
  28,395
Maintenance CAPEX, $m
  0
  -275
  -287
  -299
  -312
  -326
  -340
  -356
  -372
  -389
  -407
  -426
  -446
  -468
  -490
  -513
  -538
  -564
  -592
  -620
  -651
  -683
  -716
  -751
  -788
  -827
  -868
  -911
  -956
  -1,003
  -1,053
New CAPEX, $m
  -263
  -344
  -368
  -390
  -413
  -437
  -462
  -488
  -515
  -543
  -573
  -604
  -636
  -670
  -705
  -742
  -781
  -821
  -864
  -908
  -955
  -1,004
  -1,055
  -1,109
  -1,165
  -1,225
  -1,287
  -1,352
  -1,420
  -1,492
  -1,567
Cash from investing activities, $m
  -1,638
  -619
  -655
  -689
  -725
  -763
  -802
  -844
  -887
  -932
  -980
  -1,030
  -1,082
  -1,138
  -1,195
  -1,255
  -1,319
  -1,385
  -1,456
  -1,528
  -1,606
  -1,687
  -1,771
  -1,860
  -1,953
  -2,052
  -2,155
  -2,263
  -2,376
  -2,495
  -2,620
Free cash flow, $m
  1,390
  7,609
  7,669
  7,963
  8,275
  8,605
  8,955
  9,325
  9,716
  10,129
  10,565
  10,681
  11,165
  11,675
  12,213
  12,778
  13,374
  14,001
  14,660
  15,354
  16,083
  16,850
  17,656
  18,504
  19,395
  20,331
  21,315
  22,349
  23,435
  24,576
  25,775
Issuance/(repayment) of debt, $m
  673
  1,441
  1,521
  1,613
  1,708
  1,807
  1,911
  2,018
  2,130
  2,247
  2,369
  2,496
  2,629
  2,769
  2,915
  3,067
  3,227
  3,395
  3,571
  3,755
  3,947
  4,150
  4,362
  4,584
  4,818
  5,062
  5,319
  5,588
  5,871
  6,168
  6,479
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
  1,441
  1,521
  1,613
  1,708
  1,807
  1,911
  2,018
  2,130
  2,247
  2,369
  2,496
  2,629
  2,769
  2,915
  3,067
  3,227
  3,395
  3,571
  3,755
  3,947
  4,150
  4,362
  4,584
  4,818
  5,062
  5,319
  5,588
  5,871
  6,168
  6,479
Total cash flow (excl. dividends), $m
  -3,183
  9,051
  9,191
  9,576
  9,983
  10,413
  10,866
  11,343
  11,846
  12,376
  12,933
  13,177
  13,794
  14,444
  15,127
  15,846
  16,601
  17,396
  18,231
  19,108
  20,031
  21,000
  22,018
  23,088
  24,212
  25,393
  26,634
  27,937
  29,306
  30,744
  32,254
Retained Cash Flow (-), $m
  3,559
  -420
  -432
  -458
  -485
  -513
  -542
  -572
  -604
  -637
  -672
  -708
  -746
  -785
  -827
  -870
  -916
  -963
  -1,013
  -1,065
  -1,120
  -1,177
  -1,237
  -1,301
  -1,367
  -1,436
  -1,509
  -1,585
  -1,666
  -1,750
  -1,838
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
 
  12,627
  8,759
  9,119
  9,499
  9,900
  10,324
  10,771
  11,242
  11,738
  12,261
  12,468
  13,048
  13,658
  14,300
  14,976
  15,686
  16,433
  17,218
  18,043
  18,911
  19,823
  20,781
  21,788
  22,846
  23,957
  25,125
  26,352
  27,640
  28,994
  30,416
Discount rate, %
 
  6.70
  7.04
  7.39
  7.76
  8.14
  8.55
  8.98
  9.43
  9.90
  10.39
  10.91
  11.46
  12.03
  12.63
  13.27
  13.93
  14.63
  15.36
  16.12
  16.93
  17.78
  18.67
  19.60
  20.58
  21.61
  22.69
  23.82
  25.01
  26.26
  27.58
PV of cash for distribution, $m
 
  11,834
  7,645
  7,363
  7,045
  6,693
  6,310
  5,900
  5,468
  5,020
  4,561
  3,990
  3,549
  3,118
  2,704
  2,312
  1,947
  1,614
  1,316
  1,054
  828
  638
  481
  355
  256
  180
  123
  82
  53
  34
  20
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 20.5
Price to Sales 2.1
Price to Book 4.1
Price to Tangible Book
Price to Cash Flow 18.7
Price to Free Cash Flow 20.4
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 4.2% 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 6.7%, 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 1877.6 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 $56.7 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
TWX Time Warner 99.84 255.99  str.buy
CMCSA Comcast Cl A 38.16 31.56  hold
DIS Walt Disney 114.44 124.04  hold
CBS CBS Cl B 66.84 40.27  sell
DISCA Discovery Comm 29.16 51.91  str.buy
QVCA Liberty Intera 21.17 7.76  str.sell
NFLX Netflix 142.87 89.87  sell
SNI Scripps Networ 75.15 68.74  hold

COMPANY NEWS

▶ Fox Fires Bill O'Reilly Following Sexual Harassment Probe   [Apr-22-17 12:01PM  TheStreet.com]
▶ [$$] Week in Review, April 22   [Apr-21-17 05:47PM  Financial Times]
▶ Can Anything Dent the Fox News Brand?   [03:02PM  TheStreet.com]
▶ Fox stock gains ground following O'Reilly firing   [05:17PM  Associated Press]
▶ [$$] Bill OReilly Wont Return to Fox News, Company Says   [12:39AM  The Wall Street Journal]
▶ The Latest: Fox News addresses O'Reilly departure   [Apr-19-17 10:21PM  Associated Press]
▶ Fox News makes it official: O'Reilly is out   [07:47PM  American City Business Journals]
▶ [$$] Bill O'Reilly Is Out at Fox News   [07:43PM  The Wall Street Journal]
▶ Bill O'Reilly out at Fox News   [05:10PM  CNBC]
▶ Fox News's Delicate Balance   [03:33PM  Bloomberg]
▶ Bill OReilly to Depart FOX News Channel   [03:18PM  Business Wire]
▶ Bill O'Reilly Out At Fox News   [02:37PM  Forbes]
▶ Bill O'Reilly is out at Fox News   [02:35PM  Business Insider]
▶ O'Reilly's exit could come tomorrow   [11:28AM  American City Business Journals]
▶ [$$] Fox Is Preparing to Cut Ties With Bill OReilly   [01:08AM  The Wall Street Journal]
▶ [$$] Fox News Is Preparing to Cut Ties With Bill O'Reilly   [Apr-18-17 10:35PM  The Wall Street Journal]
▶ Bill O'Reilly's days at Fox News may be numbered   [05:55PM  Business Insider]
▶ Box Office Top 20: 'Fast 8' snags global debut record   [Apr-17-17 06:30PM  Associated Press]
▶ Fox News May Be Preparing to Ax Bill O'Reilly   [Apr-15-17 01:00PM  TheStreet.com]
▶ 3 Top Dividend Stocks in Hollywood   [11:31AM  Motley Fool]
▶ [$$] Bill OReilly Says He Is Taking Easter Break From Show   [12:22AM  The Wall Street Journal]
▶ [$$] Bill O'Reilly Says He Is Taking Easter Break   [10:21PM  The Wall Street Journal]
▶ Baseball Team Values 2017   [09:48AM  Forbes]
▶ ShowBiz Minute: O'Reilly, Pratt, Jenner   [07:06AM  Associated Press Videos]
▶ 21st Century Fox investigating O'Reilly harassment claims   [Apr-10-17 04:33PM  Associated Press]
Stock chart of FOX 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

VALUATION THEORY       ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2017. All rigths reserved.