Is News Corporation (Class A) (NWSA) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $26.57, News Corporation (Class A) (NWSA) trades 4% below TickerWorth's blended fair value of $27.68 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices NWSA undervalued vs our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +4.2% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values NWSA at about $27.08 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts News Corporation (Class A)'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.5%, with a long-run terminal growth rate of 2.5%. About 29% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 6.2% annual revenue growth for NWSA. Our base case instead compounds to about 3.2% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, NWSA's modeled DCF value ranges from about $24.60 to $32.26 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what News Corporation (Class A) would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of NWSA's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind NWSA's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $7,622,000,000 | News Corp FY2026 10-K (accession 0001564708-26-000175, filed 2026-08-07): Consolidated FY2026 revenue $9,028M LESS REA Group's revenue as consolidated by News Corp, $1,406M (10-K MD&A, Digital Real Estate Services: 'Revenues at REA Group increased $156 million, or 12%, to $1,406 million'). REA is taken out because it is valued separately at its ASX market price (see segments). What is left: Dow Jones $2,497M, Book Publishing (HarperCollins) $2,288M, News Media $2,227M and Move (Realtor.com) $610M = $7,622M. Continuing operations only: Foxtel was sold in FY2025 and sits in discontinued operations, so it is in neither year. Ex-REA FY2025 on the same basis was $8,452M - $1,250M = $7,202M, so the base grew +5.8%, of which ~1.7pts was currency (FX added $189M consolidated, $63M of it at REA) and ~0.4pt Book Publishing acquisitions ($31M). CROSS-CHECK on the latest quarter: Q4 FY2026 consolidated revenue $2,337M (+11%), with REA $386M, so ex-REA Q4 was $1,951M vs $1,791M a year earlier (+8.9%) - the year ended on its strongest quarter. |
| Base EBIT margin | 5.3% | Assumption — News Corp FY2026 10-K (accession 0001564708-26-000175, filed 2026-08-07): Ex-REA operating margin, BUILT because News Corp does not split Digital Real Estate Services EBITDA between REA and Move. (1) Total Segment EBITDA $1,627M (Dow Jones $663M, DRE $741M, Book $287M, News Media $139M, Other/corporate -$203M). (2) LESS REA's EBITDA in News Corp's books, ESTIMATED at $728M: REA's own FY26 'Group EBITDA before associates' (core, incl. India) A$1,087.7M per its FY26 presentation, less ~A$15M for leases (REA reports under IFRS 16, which keeps rent out of EBITDA; US GAAP charges it), x the FY26 average AUD/USD of 0.6787 (yfinance daily mean, Jul-25 to Jun-26; it reproduces the +5% FX effect News Corp reported on REA revenue). That leaves Move at ~$13M of EBITDA, consistent with REA booking only a A$14M loss on its 20% of Move. Ex-REA segment EBITDA = $899M. (3) LESS restructuring $86M ($113M 'impairment and restructuring' less $27M of non-cash impairment): News Corp restructures every year ($120M ex-impairment in FY2025), so it is treated as a running cost. (4) LESS ex-REA D&A $405M (see da_pct_revenue). EBIT = $899M - $86M - $405M = $408M = 5.35% of $7,622M. CROSS-CHECK: consolidated GAAP operating income FY2026 = $9,028M - $3,892M opex - $3,509M SG&A - $485M D&A - $113M = $1,029M; add back $27M impairment and remove REA's EBIT (~$728M - $80M) and you land on the same ~$408M. If REA's true US-GAAP EBITDA is $20M lower than estimated, the ex-REA margin rises ~0.25pt and the value ~+$0.40/share; the split is the softest number in the base. |
| Forecast revenue growth | 4% → 4% → 3% → 3% → 2% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | FRED DGS10 (10-year Treasury): 5.24% on 2026-10-01, the latest published observation; the program-wide rate every researched model shares. |
| Beta | 0.98 | yfinance 'beta' (5Y monthly vs S&P 500): Published 5-year monthly beta 0.976, used as is. It is the beta of the WHOLE News Corp share, REA stake included; the ex-REA media business on its own might be argued slightly higher (newspapers and ad-funded media), REA lower. Not normalized because there is no clean way to strip REA out of the share price. Each +0.1 of beta is roughly -$0.62/share. |
| Terminal growth | 2.5% | Assumption — house default: Default 2.5% (roughly long-run nominal GDP); far below the ~9.6% WACC. A news-and-books business growing with the economy forever is not obviously conservative - print keeps shrinking - but Dow Jones's professional-information mix argues for at least nominal GDP. Kept at the house default. |
| Diluted shares | 549M | News Corp Q4/FY2026 earnings release, 8-K Ex-99.1 (accession 0001564708-26-000171, filed 2026-08-05): Q4 FY2026 weighted-average DILUTED shares, Class A and Class B combined: 548.9M (FY2026 full year 558.4M; Q4 FY2025 568.6M). The count is FALLING fast: News Corp bought back 23.7M shares for $643M in FY2026 and keeps buying daily ($667M left on the 2025 program at June 30). The 10-K cover shows 360.5M A + 180.5M B = 541.1M outstanding on 2026-07-31. The June-30 count is used to stay consistent with the June-30 cash balance: buybacks since then cut shares and cash together. |
| Market price | $26.57 | Delayed quote · as of 2026-11-10 05:22 UTC |
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