Update shared on04 Sep 2025
Fair value Increased 0.37%Despite strong Q4 results, robust advertising at Cable Networks and TV, increased share repurchase authorization, and anticipated catalysts like the FOX One streaming launch, analysts maintained their fair value estimate for Fox at $60.47.
Analyst Commentary
- Strong Q4 results exceeded expectations, underpinned by robust advertising revenue at both Cable Networks and TV segments.
- Shareholder returns enhanced by a $5B increase in share repurchase authorization.
- Anticipated growth catalysts include investment in the FOX One streaming service, with its launch before football season seen as a potential driver for fiscal 2026.
- Ad momentum, particularly at FOX News, continues to support revenue growth, while affiliate revenue remains healthy despite moderating amid fewer renewals.
- Long-term profit stability is expected, with Fox viewed as better positioned than peers to maintain or grow earnings.
What's in the News
- Fox Corporation officially launched FOX One, a direct-to-consumer streaming service consolidating its News, Sports, and Entertainment content, featuring advanced AI personalization and available for $19.99/month or $199.99/year; FOX One will also be bundled with ESPN’s new direct-to-consumer service for $39.99/month starting October 2, 2025, providing access to both companies’ full suite of content (Key Developments).
- FOX One leverages Tubi Media Group technology for a live-centric, seamless and personalized user experience, following a record-setting digital broadcast of Super Bowl LIX on Tubi, and includes options to bundle with FOX Nation and B1G+ for additional content and value (Key Developments).
- Fox increased its equity buyback authorization by $5 billion to a total of $12 billion, and reported repurchasing over 4.6 million shares for $249.98 million (1.03% of shares outstanding) between April and June 2025; the company has cumulatively repurchased 190.3 million shares (35.73%) for $6.6 billion since 2019 (Key Developments).
- The Board of Directors raised Fox’s semi-annual dividend to $0.28 per share of both Class A and Class B shares, payable on September 24, 2025 (Key Developments).
- Fox was sued for $787 million in defamation by California Governor Gavin Newsom relating to coverage of a phone call with President Trump, and both FOXA and FOX were dropped from the Russell 1000 Dynamic Index in June 2025 (Periodicals, Key Developments).
Valuation Changes
Summary of Valuation Changes for Fox
- The Consensus Analyst Price Target remained effectively unchanged, at $60.47.
- The Consensus Revenue Growth forecasts for Fox remained effectively unchanged, at 0.3% per annum.
- The Discount Rate for Fox remained effectively unchanged, at 7.19%.
Disclaimer
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