Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Fox Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -0.1% to 0.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 57, DPO 36, DIO 14). At a 7.7% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 12.1x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $329.18 per share, suggesting FOX is undervalued by 526.4% at the current price of $52.55.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 11,409 | 11,922 | 12,001 | 12,523 | 12,629 | 12,944 |
| (−) Net Interest | 439 | 458 | 461 | 481 | 485 | 498 |
| (+) D&A | 365 | 352 | 378 | 394 | 417 | 427 |
| EBITDA | 12,213 | 12,732 | 12,840 | 13,398 | 13,531 | 13,869 |
| (−) Tax | 2,986 | 3,120 | 3,140 | 3,277 | 3,305 | — |
| (−) CapEx | 418 | 437 | 440 | 459 | 463 | — |
| (−) ΔWC | 577 | 108 | 17 | 110 | 22 | — |
| Free Cash Flow (FCF) | 8,232 | 9,067 | 9,243 | 9,552 | 9,741 | — |
| Peers' EBITDA Multiple | 12.1x | |||||
| Terminal Value | 167,403 | |||||
| WACC / Discount Rate | 7.66% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 7,934 | 8,116 | 7,685 | 7,377 | 6,988 | 115,734 |
| Enterprise Value | 153,835 | |||||
| Projection Period | 38,101 | 24.8% | ||||
| Terminal Value | 115,734 | 75.2% | ||||
| (−) Current Net Debt | 2,114 | |||||
| Equity Value | 151,721 | |||||
| (÷) Outstanding Shares | 461M | |||||
| Fair Price | $329 | +526.2% | ||||
| WACC \ EV/EBITDA Exit Multiple | 8.1x | 10.1x | 12.1x | 14.1x | 16.1x |
|---|---|---|---|---|---|
| 5.7% | $266 | $312 | $358 | $403 | $449 |
| 6.7% | $256 | $299 | $343 | $387 | $430 |
| 7.7% | $246 | $288 | $329 | $371 | $412 |
| 8.7% | $237 | $276 | $316 | $356 | $395 |
| 9.7% | $228 | $266 | $304 | $341 | $379 |
Current price: $52.55. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.