A Look at Fox (FOXA) Valuation Following Earnings Beat and New Ad-Tech Partnership

Fox (FOXA) just posted a 6% jump in year-over-year revenue, topping expectations for both adjusted operating income and earnings per share. This strong report comes as Fox gains new momentum in its advertising business, thanks to a strategic partnership with Mobian.

See our latest analysis for Fox.

Fox’s upbeat earnings and new strategic ad-tech alliance have coincided with a surge in investor optimism. This is reflected by a robust 19.9% year-to-date share price return and a standout 40.4% total shareholder return over the past year. Momentum appears to be building, supported by innovation and outperformance, as Fox continues to reinvent its media and advertising approach for a digital-first era.

If Fox’s shifting fortunes have you curious where the next wave of growth might come from, consider exploring fast growing stocks with high insider ownership.

With shares riding high after this earnings beat and strategic partnership, the big question remains: Is Fox still trading at a discount, or has the anticipated growth already been reflected in its current valuation?

Most Popular Narrative: 6.7% Undervalued

Fox's fair value estimate is pegged at $62.97, modestly above its last close of $58.73. The most closely followed narrative suggests just enough upside to keep optimism alive, prompted by a brighter outlook for revenue and earnings compared to cautious market sentiment.

The widespread shift away from traditional linear television toward streaming services, especially among younger audiences, poses a major risk to Fox's core broadcast and cable businesses, leading to persistent declines in advertising revenue and a shrinking addressable market. This will likely have a negative impact on top-line growth and future earnings.

Read the complete narrative.

Curious which optimistic projections could bridge the gap between current market fears and a higher fair value? The assumptions behind revenue, earnings, and future profit multiples might surprise you. Want to know the drivers that make this price target tick? Read on to uncover the narrative’s quantitative secrets.

Result: Fair Value of $62.97 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, robust demand for live news and sports, along with fast-rising digital growth, could defy expectations and steady Fox’s long-term revenue outlook.

Find out about the key risks to this Fox narrative.

Build Your Own Fox Narrative

If you see things differently or want to dive deeper into the numbers, you can craft your own take on Fox in just a few minutes. Do it your way.

A great starting point for your Fox research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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