Intrinsic value of 21st Century Fox Cl B - FOX

Previous Close

$45.69

  Intrinsic Value

$34.37

stock screener

  Rating & Target

sell

-25%

Previous close

$45.69

 
Intrinsic value

$34.37

 
Up/down potential

-25%

 
Rating

sell

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 2017), $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 84.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
  4.37
  4.43
  4.49
  4.54
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.89
  4.91
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
Revenue, $m
  29,726
  31,025
  32,400
  33,854
  35,392
  37,015
  38,728
  40,535
  42,439
  44,446
  46,560
  48,786
  51,129
  53,594
  56,188
  58,916
  61,786
  64,803
  67,975
  71,310
  74,814
  78,498
  82,369
  86,436
  90,709
  95,199
  99,916
  104,871
  110,076
  115,544
Variable operating expenses, $m
  15,166
  15,744
  16,356
  17,004
  17,688
  18,410
  19,172
  19,977
  20,824
  21,717
  20,722
  21,712
  22,755
  23,852
  25,006
  26,221
  27,498
  28,841
  30,252
  31,736
  33,296
  34,935
  36,658
  38,468
  40,370
  42,368
  44,468
  46,673
  48,989
  51,423
Fixed operating expenses, $m
  7,974
  8,149
  8,328
  8,512
  8,699
  8,890
  9,086
  9,286
  9,490
  9,699
  9,912
  10,130
  10,353
  10,581
  10,814
  11,051
  11,295
  11,543
  11,797
  12,057
  12,322
  12,593
  12,870
  13,153
  13,442
  13,738
  14,040
  14,349
  14,665
  14,988
Total operating expenses, $m
  23,140
  23,893
  24,684
  25,516
  26,387
  27,300
  28,258
  29,263
  30,314
  31,416
  30,634
  31,842
  33,108
  34,433
  35,820
  37,272
  38,793
  40,384
  42,049
  43,793
  45,618
  47,528
  49,528
  51,621
  53,812
  56,106
  58,508
  61,022
  63,654
  66,411
Operating income, $m
  6,586
  7,131
  7,715
  8,339
  9,005
  9,715
  10,470
  11,273
  12,125
  13,030
  15,926
  16,944
  18,021
  19,161
  20,368
  21,644
  22,993
  24,419
  25,926
  27,517
  29,196
  30,969
  32,841
  34,815
  36,897
  39,093
  41,408
  43,849
  46,422
  49,134
EBITDA, $m
  10,731
  11,373
  12,059
  12,791
  13,571
  14,402
  15,284
  16,221
  17,215
  18,269
  19,386
  20,568
  21,820
  23,143
  24,543
  26,022
  27,584
  29,234
  30,976
  32,815
  34,755
  36,802
  38,961
  41,237
  43,637
  46,166
  48,832
  51,641
  54,601
  57,719
Interest expense (income), $m
  0
  1,235
  1,327
  1,426
  1,531
  1,642
  1,759
  1,882
  2,013
  2,150
  2,295
  2,448
  2,609
  2,778
  2,956
  3,144
  3,342
  3,549
  3,768
  3,997
  4,239
  4,493
  4,759
  5,040
  5,334
  5,644
  5,969
  6,311
  6,670
  7,047
  7,444
Earnings before tax, $m
  5,351
  5,804
  6,289
  6,809
  7,364
  7,956
  8,588
  9,260
  9,975
  10,735
  13,479
  14,335
  15,243
  16,205
  17,224
  18,303
  19,444
  20,652
  21,928
  23,278
  24,704
  26,210
  27,801
  29,480
  31,253
  33,123
  35,097
  37,179
  39,375
  41,690
Tax expense, $m
  1,445
  1,567
  1,698
  1,838
  1,988
  2,148
  2,319
  2,500
  2,693
  2,898
  3,639
  3,870
  4,116
  4,375
  4,650
  4,942
  5,250
  5,576
  5,921
  6,285
  6,670
  7,077
  7,506
  7,960
  8,438
  8,943
  9,476
  10,038
  10,631
  11,256
Net income, $m
  3,906
  4,237
  4,591
  4,970
  5,376
  5,808
  6,269
  6,760
  7,282
  7,837
  9,839
  10,464
  11,127
  11,830
  12,573
  13,361
  14,194
  15,076
  16,008
  16,993
  18,034
  19,133
  20,295
  21,520
  22,814
  24,180
  25,621
  27,141
  28,743
  30,434

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  52,892
  55,204
  57,651
  60,239
  62,975
  65,863
  68,911
  72,126
  75,515
  79,086
  82,847
  86,808
  90,976
  95,363
  99,979
  104,834
  109,939
  115,308
  120,952
  126,885
  133,122
  139,676
  146,563
  153,800
  161,405
  169,394
  177,787
  186,604
  195,866
  205,594
Adjusted assets (=assets-cash), $m
  52,892
  55,204
  57,651
  60,239
  62,975
  65,863
  68,911
  72,126
  75,515
  79,086
  82,847
  86,808
  90,976
  95,363
  99,979
  104,834
  109,939
  115,308
  120,952
  126,885
  133,122
  139,676
  146,563
  153,800
  161,405
  169,394
  177,787
  186,604
  195,866
  205,594
Revenue / Adjusted assets
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
  0.562
Average production assets, $m
  22,086
  23,051
  24,073
  25,154
  26,296
  27,502
  28,775
  30,117
  31,532
  33,024
  34,594
  36,248
  37,989
  39,820
  41,748
  43,775
  45,907
  48,149
  50,505
  52,983
  55,587
  58,324
  61,200
  64,222
  67,397
  70,733
  74,238
  77,919
  81,787
  85,849
Working capital, $m
  10,998
  11,479
  11,988
  12,526
  13,095
  13,696
  14,329
  14,998
  15,703
  16,445
  17,227
  18,051
  18,918
  19,830
  20,790
  21,799
  22,861
  23,977
  25,151
  26,385
  27,681
  29,044
  30,476
  31,981
  33,562
  35,224
  36,969
  38,802
  40,728
  42,751
Total debt, $m
  21,407
  23,002
  24,690
  26,476
  28,363
  30,356
  32,460
  34,678
  37,016
  39,480
  42,076
  44,808
  47,685
  50,712
  53,896
  57,246
  60,769
  64,473
  68,368
  72,462
  76,765
  81,287
  86,040
  91,033
  96,280
  101,793
  107,584
  113,668
  120,058
  126,771
Total liabilities, $m
  36,496
  38,091
  39,779
  41,565
  43,452
  45,445
  47,549
  49,767
  52,105
  54,569
  57,165
  59,897
  62,774
  65,801
  68,985
  72,335
  75,858
  79,562
  83,457
  87,551
  91,854
  96,376
  101,129
  106,122
  111,369
  116,882
  122,673
  128,757
  135,147
  141,860
Total equity, $m
  16,397
  17,113
  17,872
  18,674
  19,522
  20,418
  21,362
  22,359
  23,410
  24,517
  25,683
  26,910
  28,203
  29,563
  30,993
  32,498
  34,081
  35,745
  37,495
  39,334
  41,268
  43,299
  45,435
  47,678
  50,035
  52,512
  55,114
  57,847
  60,718
  63,734
Total liabilities and equity, $m
  52,893
  55,204
  57,651
  60,239
  62,974
  65,863
  68,911
  72,126
  75,515
  79,086
  82,848
  86,807
  90,977
  95,364
  99,978
  104,833
  109,939
  115,307
  120,952
  126,885
  133,122
  139,675
  146,564
  153,800
  161,404
  169,394
  177,787
  186,604
  195,865
  205,594
Debt-to-equity ratio
  1.310
  1.340
  1.380
  1.420
  1.450
  1.490
  1.520
  1.550
  1.580
  1.610
  1.640
  1.670
  1.690
  1.720
  1.740
  1.760
  1.780
  1.800
  1.820
  1.840
  1.860
  1.880
  1.890
  1.910
  1.920
  1.940
  1.950
  1.960
  1.980
  1.990
Adjusted equity ratio
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,906
  4,237
  4,591
  4,970
  5,376
  5,808
  6,269
  6,760
  7,282
  7,837
  9,839
  10,464
  11,127
  11,830
  12,573
  13,361
  14,194
  15,076
  16,008
  16,993
  18,034
  19,133
  20,295
  21,520
  22,814
  24,180
  25,621
  27,141
  28,743
  30,434
Depreciation, amort., depletion, $m
  4,145
  4,242
  4,344
  4,452
  4,566
  4,687
  4,814
  4,948
  5,090
  5,239
  3,459
  3,625
  3,799
  3,982
  4,175
  4,377
  4,591
  4,815
  5,051
  5,298
  5,559
  5,832
  6,120
  6,422
  6,740
  7,073
  7,424
  7,792
  8,179
  8,585
Funds from operations, $m
  8,052
  8,479
  8,935
  9,422
  9,942
  10,495
  11,083
  11,708
  12,372
  13,076
  13,299
  14,089
  14,926
  15,812
  16,748
  17,738
  18,785
  19,891
  21,058
  22,291
  23,593
  24,966
  26,415
  27,943
  29,554
  31,253
  33,045
  34,933
  36,922
  39,019
Change in working capital, $m
  453
  481
  509
  538
  569
  601
  634
  668
  705
  743
  782
  824
  867
  912
  960
  1,010
  1,062
  1,116
  1,174
  1,234
  1,297
  1,363
  1,432
  1,505
  1,581
  1,661
  1,745
  1,833
  1,926
  2,023
Cash from operations, $m
  7,598
  7,998
  8,426
  8,884
  9,373
  9,894
  10,449
  11,040
  11,667
  12,333
  12,517
  13,266
  14,059
  14,899
  15,788
  16,729
  17,723
  18,774
  19,885
  21,057
  22,296
  23,603
  24,982
  26,438
  27,973
  29,592
  31,299
  33,099
  34,996
  36,996
Maintenance CAPEX, $m
  -2,117
  -2,209
  -2,305
  -2,407
  -2,515
  -2,630
  -2,750
  -2,877
  -3,012
  -3,153
  -3,302
  -3,459
  -3,625
  -3,799
  -3,982
  -4,175
  -4,377
  -4,591
  -4,815
  -5,051
  -5,298
  -5,559
  -5,832
  -6,120
  -6,422
  -6,740
  -7,073
  -7,424
  -7,792
  -8,179
New CAPEX, $m
  -912
  -965
  -1,022
  -1,081
  -1,142
  -1,206
  -1,273
  -1,342
  -1,415
  -1,491
  -1,571
  -1,654
  -1,741
  -1,832
  -1,927
  -2,027
  -2,132
  -2,242
  -2,357
  -2,478
  -2,604
  -2,737
  -2,876
  -3,022
  -3,175
  -3,336
  -3,505
  -3,682
  -3,867
  -4,062
Cash from investing activities, $m
  -3,029
  -3,174
  -3,327
  -3,488
  -3,657
  -3,836
  -4,023
  -4,219
  -4,427
  -4,644
  -4,873
  -5,113
  -5,366
  -5,631
  -5,909
  -6,202
  -6,509
  -6,833
  -7,172
  -7,529
  -7,902
  -8,296
  -8,708
  -9,142
  -9,597
  -10,076
  -10,578
  -11,106
  -11,659
  -12,241
Free cash flow, $m
  4,569
  4,824
  5,099
  5,396
  5,715
  6,058
  6,426
  6,820
  7,240
  7,689
  7,644
  8,153
  8,694
  9,269
  9,879
  10,527
  11,214
  11,942
  12,713
  13,529
  14,393
  15,307
  16,274
  17,296
  18,376
  19,516
  20,721
  21,994
  23,337
  24,755
Issuance/(repayment) of debt, $m
  1,494
  1,595
  1,689
  1,786
  1,887
  1,993
  2,103
  2,218
  2,338
  2,464
  2,595
  2,733
  2,876
  3,027
  3,185
  3,350
  3,523
  3,704
  3,895
  4,094
  4,303
  4,522
  4,752
  4,994
  5,247
  5,512
  5,791
  6,084
  6,391
  6,713
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,494
  1,595
  1,689
  1,786
  1,887
  1,993
  2,103
  2,218
  2,338
  2,464
  2,595
  2,733
  2,876
  3,027
  3,185
  3,350
  3,523
  3,704
  3,895
  4,094
  4,303
  4,522
  4,752
  4,994
  5,247
  5,512
  5,791
  6,084
  6,391
  6,713
Total cash flow (excl. dividends), $m
  6,063
  6,419
  6,788
  7,182
  7,603
  8,052
  8,529
  9,038
  9,579
  10,153
  10,239
  10,885
  11,570
  12,296
  13,064
  13,877
  14,737
  15,646
  16,607
  17,623
  18,696
  19,830
  21,026
  22,289
  23,622
  25,029
  26,513
  28,077
  29,728
  31,467
Retained Cash Flow (-), $m
  -675
  -717
  -759
  -802
  -848
  -895
  -945
  -997
  -1,051
  -1,107
  -1,166
  -1,228
  -1,292
  -1,360
  -1,431
  -1,505
  -1,583
  -1,664
  -1,750
  -1,839
  -1,933
  -2,032
  -2,135
  -2,244
  -2,357
  -2,477
  -2,602
  -2,733
  -2,871
  -3,016
Prev. year cash balance distribution, $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 flow adjustment, $m
  114
  119
  124
  130
  135
  142
  148
  155
  162
  170
  178
  186
  195
  205
  214
  225
  236
  247
  259
  272
  285
  299
  314
  329
  346
  363
  381
  400
  419
  440
Cash available for distribution, $m
  5,388
  5,703
  6,029
  6,380
  6,755
  7,156
  7,585
  8,041
  8,528
  9,046
  9,073
  9,658
  10,278
  10,936
  11,633
  12,372
  13,154
  13,982
  14,858
  15,784
  16,763
  17,798
  18,891
  20,046
  21,265
  22,552
  23,911
  25,344
  26,856
  28,451
Discount rate, %
  6.60
  6.93
  7.28
  7.64
  8.02
  8.42
  8.84
  9.29
  9.75
  10.24
  10.75
  11.29
  11.85
  12.45
  13.07
  13.72
  14.41
  15.13
  15.88
  16.68
  17.51
  18.39
  19.31
  20.27
  21.29
  22.35
  23.47
  24.64
  25.87
  27.17
PV of cash for distribution, $m
  5,055
  4,987
  4,884
  4,752
  4,592
  4,405
  4,191
  3,952
  3,691
  3,413
  2,951
  2,676
  2,396
  2,117
  1,843
  1,581
  1,335
  1,108
  903
  722
  566
  434
  326
  239
  171
  119
  81
  53
  34
  21
Current shareholders' claim on cash, %
  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 28.7
Price to Sales 3
Price to Book 5.4
Price to Tangible Book
Price to Cash Flow 22.5
Price to Free Cash Flow 25
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 4.3% 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 6.6%, 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 51.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $7802 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 6.2% 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 0.4%.

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 74.3%.

Life of production assets of 10 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 37%. 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 1851 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 $84.6 billion.

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VIAB Viacom Cl B 27.49 57.25  str.buy
CBS CBS Cl B 57.23 38.14  sell
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COMPANY NEWS

▶ Asian markets fall as China, US ready for more tariffs   [Jul-19-18 11:51PM  Associated Press]
▶ [$$] Sky Takeover Explained   [11:27AM  The Wall Street Journal]
▶ Comcast ends pursuit of Fox assets, focuses on Sky   [09:22AM  American City Business Journals]
▶ Comcast won't pursue bid for Fox assets   [08:37AM  CNBC Videos]
▶ [$$] Disneys Big Question: How Crucial Is Sky to Its Fox Deal?   [Jul-18-18 08:38PM  The Wall Street Journal]
▶ Why Are Comcast Corporation Shares Down 18% in 2018?   [Jul-16-18 02:33PM  Motley Fool]
▶ Why Sinclair Broadcast Group Stock Gained 17.3% in June   [Jul-13-18 05:20PM  Motley Fool]
▶ What Comes Next in the Takeover Battle Over Sky   [Jul-12-18 03:02PM  Barrons.com]
▶ Netflix leads Emmy nominations for first time with 112   [01:25PM  American City Business Journals]
▶ UK government gives Fox all clear to acquire Sky   [12:57PM  American City Business Journals]
▶ Company News For Jul 12, 2018   [10:20AM  Zacks]
▶ 21st Century Fox, Comcast in bidding war for Sky   [08:50AM  Fox Business Videos]
▶ Comcast Raises Its Offer for Sky to $34B   [03:59AM  Investopedia]
▶ [$$] Fox Losing Money on World Cup Without U.S. Team   [08:36PM  The Wall Street Journal]
▶ Comcast ups offer for Sky, outbidding Fox   [06:53PM  American City Business Journals]
▶ The fight to sell the UFC's and WWE's media rights   [06:20PM  American City Business Journals]
▶ [$$] World Cup Losers: The U.S. and Fox   [11:26AM  The Wall Street Journal]
▶ Sky approves 21st Century Fox' higher bid   [09:14AM  Fox Business Videos]
▶ This Week in Comcast: Get ready for new Fox, Sky bids soon   [07:31AM  American City Business Journals]
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