Fox Corp Class A (FOXA)

Conclusion

Fox Corporation runs the FOX broadcast network, the Tubi streaming service, and cable news and sports channels in the United States. At the latest price of 67.69 USD on 2026-11-09, its market capitalisation is 23.4 billion USD and its enterprise value is 26.5 billion USD.

The verdict is undervalued. Today's P/E of 11.5 sits at a premium of -19.3% to its ten-year median of 14.3, and EV/EBITDA of 6.2 at -21.3% to a median of 7.9. The DCF gives 115.43 USD per share at a discount rate of 8.9%, and the fair value band runs from 77.54 to 116.31 USD with a midpoint of 96.92 USD, a margin of safety of 43.2%. The fair value from historical multiples is 78.41 USD. The reverse DCF implies revenue growth of -2.1% a year, against 5.8% revenue growth delivered over five years.

What holds the case up is the balance sheet, with a current ratio of 3.79 and net debt to EBITDA of 0.71, and the return on invested capital of 18.8% against a WACC of 7.6%. Free cash flow conversion over five years is 113.7%. What would break it is the weak growth outlook: the five-year EPS growth is only 1.5%, next year's EPS estimate shows growth of -3.8%, and the DCF rests on the terminal value for 56.6% of its result.

Financial health

Financial strength is green, held up by the current ratio of 3.79, net debt to EBITDA of 0.71, interest coverage of 10.4x and an Altman Z-score of 3.33. The quick ratio is 3.37 and debt to equity is 0.61. The Altman Z-score sits in the safe zone, though the model was designed for manufacturers and Fox is a media company, so the reading is a rough guide. Insolvency risk: low, about 0.2% by the estimate of the Ohlson model over one to two years. Debt has fallen by 8.0% a year over five years, so the company has been reducing its borrowings relative to its revenue. The data do not include a debt maturity schedule, so the timing of future repayments cannot be checked here.

Earnings quality

Earnings quality is green, supported by free cash flow conversion of 108.7% on a trailing basis and 113.7% over five years. The accrual ratio is -1.3%, and stock-based compensation is 0.8% of revenue, leaving free cash flow after stock-based compensation at 2.07 billion USD. The share count has fallen by 6.2% a year over five years, which points to buybacks. The Piotroski score is 7 out of 9 and the Beneish M-score of -2.21 is in the unlikely range for earnings manipulation. The company beat analyst estimates in all 8 of the last quarters, with an average surprise of 36.4%. Current-year estimates have risen 7.3% over 90 days, while next-year estimates have risen 2.6% over 90 days but show growth of -3.8%.

Profitability

Profitability is green. The operating margin is 23.0% against a ten-year median of 22.5%, and the gross margin is 34.1% against a median of 35.8%. The net margin is 11.3% against a median of 12.3%. Operating margin stability is 8.2%. ROIC is 18.8% against a WACC of 7.6%, a ROIC minus WACC value of 11.1%, which the model labels as creating value. ROE is 16.3%. The DuPont split shows a net margin of 9.8%, an asset turnover of 0.76 and an equity multiplier of 1.93, so leverage contributes to the return on equity but does not dominate it.

Growth

Growth is yellow, with one good signal, two neutral and one bad. Revenue compound growth is 4.7% over three years, 5.8% over five and 6.8% over ten. Revenue grew in 9 of the last 10 years. EPS compound growth is 18.7% over three years but only 1.5% over five and 8.5% over ten, so the recent three-year rise is well above the longer trend. Free cash flow per share fell at an average of 1.3% a year over five years. The bad signal is next year's EPS estimate, which shows growth of -3.8%.

Valuation

Valuation is green. The P/E of 11.5 is at a premium of -19.3% to its median of 14.3, EV/EBITDA of 6.2 at -21.3% to 7.9, P/FCF of 10.6 at -6.9% to 11.4, and P/S of 1.30 at -13.7% to 1.51. The P/B of 1.88 is at -1.4% to 1.91. The DCF gives 115.43 USD per share, using a discount rate of 8.9%, a first-stage growth of 5.8% and a terminal growth of 2.5%. The fair value band runs from 77.54 to 116.31 USD with a midpoint of 96.92 USD, a margin of safety of 43.2% at the current price. The reverse DCF implies growth of -2.1%, against revenue growth of 5.8% over five years and free cash flow per share growth of -1.3%. The fair value is an order-of-magnitude estimate built on fixed assumptions, not a price target. The dividend yield is 1.2% and the payout on free cash flow is 12.7%.

Risks

The weakest number is the next-year EPS estimate of -3.8%. If earnings fall, the valuation case based on current multiples weakens. Five-year EPS growth of 1.5% and free cash flow per share growth of -1.3% show that the past growth in earnings has not been steady. Net margin of 11.3% is below its ten-year median of 12.3%, so any further pressure on margins would reduce profit. The DCF is also sensitive: 56.6% of its value comes from the terminal value, so a change in the discount rate or terminal growth would move the result a long way. The data do not include revenue by segment, so the contribution of the cable and broadcast divisions cannot be separated. No debt maturity schedule is available. This analysis uses only the figures supplied and does not cover events or market conditions beyond the stated dates.