News Valuation

Is NWSA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NWSA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NWSA ($26.74) is trading below our estimate of fair value ($31.26)

Significantly Below Fair Value: NWSA is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for NWSA?

Other financial metrics that can be useful for relative valuation.

NWSA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA14.5x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does NWSA's PE Ratio compare to its peers?

The above table shows the PE ratio for NWSA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.9x
NYT New York Times
32.7xn/aUS$8.2b
SCHL Scholastic
20.1x42.7%US$1.0b
10.1x-0.9%US$15.1b
OMC Omnicom Group
12.6x4.8%US$18.6b
NWSA News
73.3x23.3%US$15.4b

Price-To-Earnings vs Peers: NWSA is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the peer average (18.9x).


Price to Earnings Ratio vs Industry

How does NWSA's PE Ratio compare vs other companies in the US Media Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NWSA is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the US Media industry average (11x).


Price to Earnings Ratio vs Fair Ratio

What is NWSA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NWSA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio73.3x
Fair PE Ratio27.3x

Price-To-Earnings vs Fair Ratio: NWSA is expensive based on its Price-To-Earnings Ratio (73.3x) compared to the estimated Fair Price-To-Earnings Ratio (27.3x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NWSA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.74
US$30.58
+14.4%
14.5%US$37.00US$22.00n/a8
May ’25US$23.84
US$30.64
+28.5%
14.2%US$37.00US$22.00n/a8
Apr ’25US$25.81
US$30.77
+19.2%
14.3%US$37.00US$22.00n/a8
Mar ’25US$26.33
US$29.64
+12.6%
12.7%US$36.00US$22.00n/a8
Feb ’25US$24.77
US$26.92
+8.7%
13.1%US$32.00US$21.00n/a8
Jan ’25US$24.55
US$26.67
+8.7%
12.3%US$32.00US$21.00n/a8
Dec ’24US$22.15
US$26.50
+19.6%
13.1%US$32.00US$21.00n/a7
Nov ’24US$20.78
US$26.07
+25.5%
13.8%US$32.00US$21.00n/a7
Oct ’24US$20.06
US$25.64
+27.8%
13.8%US$32.00US$21.00n/a7
Sep ’24US$21.28
US$25.64
+20.5%
13.8%US$32.00US$21.00n/a7
Aug ’24US$19.81
US$23.82
+20.2%
18.2%US$30.00US$16.90n/a6
Jul ’24US$19.50
US$23.65
+21.3%
17.8%US$30.00US$16.90n/a6
Jun ’24US$18.69
US$23.65
+26.5%
17.8%US$30.00US$16.90n/a6
May ’24US$17.37
US$23.17
+33.4%
17.9%US$29.00US$16.00US$23.846
Apr ’24US$17.27
US$24.42
+41.4%
10.9%US$29.00US$20.00US$25.816
Mar ’24US$16.92
US$24.79
+46.5%
10.6%US$29.00US$20.00US$26.337
Feb ’24US$20.72
US$23.81
+14.9%
16.4%US$30.00US$17.00US$24.777
Jan ’24US$18.20
US$21.74
+19.5%
22.1%US$30.00US$16.50US$24.557
Dec ’23US$19.16
US$21.74
+13.5%
22.1%US$30.00US$16.50US$22.157
Nov ’23US$16.99
US$23.17
+36.4%
22.2%US$32.00US$17.00US$20.787
Oct ’23US$15.11
US$26.03
+72.2%
19.3%US$34.00US$18.00US$20.068
Sep ’23US$16.92
US$26.03
+53.8%
19.3%US$34.00US$18.00US$21.288
Aug ’23US$17.13
US$26.55
+55.0%
16.5%US$32.00US$20.00US$19.818
Jul ’23US$15.75
US$27.33
+73.5%
16.8%US$33.00US$20.00US$19.508
Jun ’23US$17.21
US$27.33
+58.8%
16.8%US$33.00US$20.00US$18.698
May ’23US$19.86
US$30.99
+56.0%
16.9%US$38.00US$20.00US$17.378

Analyst Forecast: Target price is less than 20% higher than the current share price.


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