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 -0.0% 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 30, 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 $330.69 per share, suggesting FOXA is undervalued by 461.9% at the current price of $58.85.
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 | 11,418 | 11,922 | 12,005 | 12,523 | 12,629 | 12,944 |
| (−) Net Interest | 439 | 458 | 461 | 481 | 485 | 498 |
| (+) D&A | 365 | 352 | 378 | 394 | 417 | 427 |
| EBITDA | 12,222 | 12,732 | 12,844 | 13,399 | 13,531 | 13,869 |
| (−) Tax | 2,988 | 3,120 | 3,141 | 3,277 | 3,305 | — |
| (−) CapEx | 418 | 437 | 440 | 459 | 463 | — |
| (−) ΔWC | -455 | 108 | 18 | 111 | 23 | — |
| Free Cash Flow (FCF) | 9,271 | 9,067 | 9,245 | 9,552 | 9,741 | — |
| Peers' EBITDA Multiple | 12.1x | |||||
| Terminal Value | 167,404 | |||||
| WACC / Discount Rate | 7.71% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 8,933 | 8,111 | 7,678 | 7,365 | 6,973 | 115,471 |
| Enterprise Value | 154,531 | |||||
| Projection Period | 39,061 | 25.3% | ||||
| Terminal Value | 115,471 | 74.7% | ||||
| (−) Current Net Debt | 2,114 | |||||
| Equity Value | 152,417 | |||||
| (÷) Outstanding Shares | 461M | |||||
| Fair Price | $331 | +461.8% | ||||
| WACC \ EV/EBITDA Exit Multiple | 8.1x | 10.1x | 12.1x | 14.1x | 16.1x |
|---|---|---|---|---|---|
| 5.7% | $268 | $314 | $359 | $405 | $450 |
| 6.7% | $258 | $301 | $345 | $388 | $432 |
| 7.7% | $248 | $289 | $331 | $372 | $414 |
| 8.7% | $238 | $278 | $318 | $357 | $397 |
| 9.7% | $229 | $267 | $305 | $343 | $381 |
Current price: $58.85. 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.