Using the PEG framework with analyst consensus forward EPS growth of 13.3% plus 1.2% dividend yield, News Corporation has a fair value of $13.92 based on NTM EPS (FY2026) of $1.05. The current PEG ratio is 1.98.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 12.0% |
| Dividend Yield | +1.2% |
| Adjusted Growth (clamped 8–25%) | 13.3% |
| Fair P/E | 13.3x |
| NTM EPS (FY2026) | $1.05 |
| Fair Value | $13.92 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $0.81 | — | — |
| FY2026E | $1.05 | +29.6% | 7 |
| FY2027E | $1.24 | +18.2% | 7 |
| FY2028E | $1.41 | +13.6% | 5 |
| FY2029E | $1.43 | +1.1% | 3 |
| FY2030E | $1.43 | +0.4% | 3 |
5Y Forward EPS CAGR: 12.0%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $330.0M | $0.56 | — |
| FY2022 | $623.0M | $1.05 | +87.5% |
| FY2023 | $149.0M | $0.26 | -75.2% |
| FY2024 | $266.0M | $0.47 | +80.8% |
| FY2025 | $464.0M | $0.81 | +72.3% |
4Y Historical EPS CAGR: 9.7%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.