News Corp B (NWS)

Conclusion

News Corp B (NWS.US) is a media and information company. Its brands include The Wall Street Journal, Dow Jones, property portals such as realestate.com.au and Realtor.com, and the book publisher HarperCollins. On 2026-11-09 the share price was 29.33 USD, giving a market capitalisation of 5.26 billion USD.

The verdict is undervalued. The company trades at a P/E of 6.27 and an EV/EBITDA of 4.65, but ten-year median multiples are not available because the price history is too short for a comparison. The DCF gives 50.27 USD per share at a discount rate of 9.95%. The fair value band runs from 40.21 to 60.32 USD, with a midpoint of 50.27 USD and a margin of safety of 71.4% at the current price. The reverse DCF implies growth of -6.4% a year, against a five-year revenue CAGR of -0.7% and a five-year FCF per share CAGR of 0.4%.

What supports the case is strong cash generation: free cash flow conversion is 85.6% on a trailing basis, and the company beat earnings estimates in all eight of the last quarters. Piotroski scores it 7 of 9. What could break it is the weak top line, with revenue down at a 5-year CAGR of -0.7%, a Altman Z-score of 1.45 in the distress zone, and ROIC of 8.31% only just above WACC of 8.17%.

Financial health

Financial strength is yellow: the current ratio of 1.62 and net debt to EBITDA of 0.79 support the company, while the Altman Z-score of 1.45 pulls it down. The quick ratio is 1.38 and debt to equity is 0.34. Interest coverage is not available because the company does not report its interest expense. The Altman model was designed for manufacturers, so its distress zone reading must be read with that in mind. Insolvency risk: low, about 0.19% by the estimate of the Ohlson model over one to two years, based on figures as of 2026-06-30.

Earnings quality

Earnings quality is green, with four of four signals assessed good. Free cash flow conversion is 85.6% on a trailing basis and 179.6% over five years. The accrual ratio is -4.3%, and free cash flow after stock-based compensation is 717 million USD. Stock-based compensation relative to revenue is not available because the company does not report it. The share count fell at a 5-year CAGR of -1.2%, which reflects buybacks. The Piotroski score is 7 of 9. The Beneish M-score of -2.65 is unlikely to indicate manipulation. Earnings beat estimates in all eight recent quarters, with an average surprise of 30.6%. Estimates for the current year rose 2.2% over 90 days, and estimates for next year rose 3.7%.

Profitability

Profitability is yellow. The gross margin is 56.0% against a ten-year median of 50.0%, and the operating margin is 12.0% against a median of 12.5%. The net margin is 9.1% against a median of 2.7%. ROIC is 8.31% against a WACC of 8.17%, so the ROIC minus WACC value of 0.14% is neutral. The five-year median ROIC is 6.68%. Leverage props up the return on equity: the DuPont split shows a net margin of 6.35%, an asset turnover of 0.58 and an equity multiplier of 1.82, producing a return on equity of 9.87%. Margin stability is 0.32.

Growth

Growth is yellow. Revenue grew at a 3-year CAGR of 4.1%, but fell at a 5-year CAGR of -0.7%, and its 10-year CAGR is 0.9%. Revenue grew in seven of ten comparable years. EPS compounded at 58.6% over three years, 13.0% over five and 12.8% over ten. Free cash flow per share grew at 12.3% over three years, 0.4% over five and 2.0% over ten. Analysts expect next year's EPS to grow 14.6%. Revenue is the weak point, and the earnings growth rests on margins and buybacks more than on sales.

Valuation

Valuation is green, with the verdict signal assessed good. At 29.33 USD the P/E is 6.27, EV/EBITDA is 4.65, price to free cash flow is 7.33, price to sales is 0.57 and price to book is 0.62. Ten-year median multiples are not available, so no premium or discount can be stated. The DCF gives 50.27 USD per share, using a discount rate of 9.95%, near-term growth of 0.85% and terminal growth of 2.5%. The fair value band runs from 40.21 to 60.32 USD, with a margin of safety of 71.4%. This band rests on fixed assumptions, including a 5% equity risk premium and capped growth, and is not a price target. The fair value from historical multiples is not available. The reverse DCF implies growth of -6.4%. The dividend yield is 4.15%, with a payout of 30.4% of free cash flow.

Risks

The weakest numbers would hurt in different ways. A revenue CAGR of -0.7% over five years means the top line is shrinking, so the cash flows behind the DCF would need to hold up. The Altman Z-score of 1.45 signals financial stress on a model built for manufacturers, which makes the Ohlson estimate of low insolvency risk important. ROIC of 8.31% barely exceeds WACC of 8.17%, so growth adds little value unless returns improve. The DCF is sensitive to its assumptions, and the historical multiples and interest coverage are not available. Stock-based compensation is also not available. This analysis has no debt maturity schedule and no revenue by segment, so refinancing risk and the contribution of each business cannot be checked.