Using the industry peer median P/E multiple (trailing + forward), News Corporation (NWS) has a fair value of $17.78 based on 7 comparable companies in the Entertainment industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| News CorporationNWS | 15,692 | 34.0x | 26.2x |
| Netflix, Inc.NFLX | 397,041 | 37.0x | 29.7x |
| The Walt Disney CompanyDIS | 168,374 | 13.9x | 14.4x |
| Warner Bros. Discovery, Inc.WBD | 67,367 | 93.7x | — |
| Fox CorporationFOXA | 26,218 | 12.0x | 12.6x |
| Fox CorporationFOX | 23,418 | 10.7x | 11.3x |
| TKO Group Holdings, Inc.TKO | 15,185 | 85.1x | 38.3x |
| News CorporationNWSA | 13,708 | 11.7x | 23.1x |
| Industry Median | 13.9x | 18.8x | |
| (*) Profit after tax | 464 | 598 | |
| Equity Value | 6,431 | 13,834 | |
| (/) Outstanding shares | 570 | 570 | |
| Fair Price | $11 | $24 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.