One-glance verdict
Undervalued
$308.71 our estimate vs market $54.92
Wall Street consensus: $72.31 (-76.6% lower than our fair-value estimate)
82% below our estimate, below the bear case
Fundamentals snapshot
Fox Corporation
FOXA · NMS · Communication Services · Entertainment
Current price
$54.92
52-week range
$48.34 - $76.39
Market cap
$23.06B
Balance sheet
Watch
8.01x Adequate
Net debt $3.97B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 15.2% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 10.7% above its 5-year average P/E.
- Risk Insider ownership is only 1.3% (peer median: 2.5%).
What this company does
Fox Corporation
Fox Corporation is a media company that owns well-known channels like FOX News, FOX Sports, and the FOX broadcast network. The company makes most of its money in two ways: by charging fees to cable and satellite providers for carrying its channels and by selling advertising time during its TV shows and on its free streaming service, Tubi. This business model relies on Fox creating popular content that keeps audiences watching and attracts both advertisers and cable company partners.
How the company got here
The Fox Corporation you see today was formed in 2019, but its roots go back much further. It was created when the larger 21st Century Fox, a media empire built by Rupert Murdoch, sold most of its entertainment assets to The Walt Disney Company. What remained—primarily the Fox broadcast network, Fox News, and Fox Sports—was spun off into the new, more focused Fox Corporation. This new company is still controlled by the Murdoch family and centers its business on live news and sports, which are popular with viewers and valuable to advertisers.
What it actually does
Fox Corporation is a media company that creates and delivers news, sports, and entertainment content to people across the United States. You probably recognize its biggest names: the FOX broadcast channel, FOX News, and FOX Sports. The company makes money primarily in two ways: by selling advertising time during its shows and by charging fees to cable and satellite companies (known as affiliate fees) to carry its channels. It also owns a free, ad-supported streaming service called Tubi and a group of local television stations in major cities.
Cable Network Programming
This is a major part of Fox's business, making up a little less than half of its revenue. It includes the well-known cable channels FOX News and FOX Business, as well as national sports channels like FS1 and FS2. This segment earns money from the monthly fees that cable and satellite providers pay to include these channels in their TV packages and from selling commercials that air on them. Because many people watch news and sports live, these channels are considered valuable and can command high advertising rates.
Television
This is Fox's largest business segment, bringing in more than half of the company's total revenue. It includes the national FOX broadcast network (which airs shows like "The Simpsons" and NFL games), a collection of 29 local TV stations it owns in major markets, and the free streaming service Tubi. This division makes money from advertising sold on the broadcast network and its local stations, fees from affiliated local stations that carry its programming, and ads on Tubi.
Credible
This is a smaller, newer part of Fox's business that operates in the world of personal finance. Credible is an online marketplace where people can compare rates for financial products like student loans, personal loans, and mortgages from different lenders. It doesn't lend money itself but acts as a go-between, earning a fee when a user finds a loan through its platform. Fox acquired a majority stake in this company in 2019 to expand its digital offerings and connect directly with consumers on financial matters.
The FOX Studio Lot
This segment involves the physical studio space the company owns in Los Angeles. The historic 50-plus acre lot includes sound stages, backlot sets like a New York Street, and various production services like costume and set lighting departments. This part of the company makes money by renting out these facilities and providing services to its own productions as well as other film and television companies.
What management is betting on now
Fox's leadership is focused on the power of live programming, especially news and major sporting events like the NFL and the FIFA World Cup, which continue to draw large audiences. A major priority is growing its free, ad-supported streaming service, Tubi, to capture viewers who are moving away from traditional cable TV. The company is also investing in new digital platforms and even a sports-focused streaming joint venture with other media companies to adapt to changing viewing habits. They are also planning a major, multi-year expansion of their Los Angeles studio lot, called FOX FUTURE, to add more soundstages and production facilities.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$787.00M
FY2025 Q1
$94.00M
FY2025 Q2
$-436.00M
FY2025 Q3
$1.94B
FY2025 Q4
$1.39B
FY2026 Q1
$-234.00M
FY2026 Q2
$-791.00M
FY2026 Q3
$1.77B
Revenue
$3.99B
Net income
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Diluted EPS
0.38
Operating cash flow
$1.90B
Free cash flow
$1.77B
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Sources
Revenue
$5.18B
Net income
—
Diluted EPS
0.52
Operating cash flow
$-669.00M
Free cash flow
$-791.00M
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Sources
Revenue
$3.74B
Net income
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Diluted EPS
1.32
Operating cash flow
$-130.00M
Free cash flow
$-234.00M
Fetching…
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Revenue
$3.29B
Net income
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Diluted EPS
1.57
Operating cash flow
$1.51B
Free cash flow
$1.39B
Fetching…
Sources
Revenue
$4.37B
Net income
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Diluted EPS
0.75
Operating cash flow
$2.02B
Free cash flow
$1.94B
Fetching…
Sources
Revenue
$5.08B
Net income
—
Diluted EPS
0.81
Operating cash flow
$-362.00M
Free cash flow
$-436.00M
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Sources
Revenue
$3.56B
Net income
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Diluted EPS
1.78
Operating cash flow
$158.00M
Free cash flow
$94.00M
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Sources
Revenue
$3.09B
Net income
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Diluted EPS
0.68
Operating cash flow
$899.00M
Free cash flow
$787.00M
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Sources
Is it cheap or expensive?
Fair value $308.71 vs current price $54.92
Wall Street consensus is the average analyst price target: $72.31 (-76.6% lower than our fair-value estimate).
Our most-likely fair value is $308.71 a share — about 462.1% above today's price of $54.92, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $4.0B. Interest coverage 8.0x.
Net debt
$3.97B
Interest coverage
8.01x
Fox Corporation's profit covers its interest bill about 8.0 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
FOXA
BASELINE
Fox Corporation
Total debt $7.57B Interest coverage 8.01x This is the baseline the peer rows are being compared against.
Total debt $2.93B Interest coverage 11.25x +40% vs FOXA Carries about 1.4x more debt cushion than FOXA.
Total debt $32.47B Interest coverage 0.63x -92% vs FOXA Carries about 12.8x less debt cushion than FOXA.
Total debt $12.49B Interest coverage 2.28x -72% vs FOXA Carries about 3.5x less debt cushion than FOXA.
Total debt $94.61B Interest coverage 4.69x -41% vs FOXA Carries about 1.7x less debt cushion than FOXA.
What you should know
The case for and against FOXA
3 Rewards
2 Risks
Rewards
-
Returns 15.2% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Trades at 14.5x P/E vs peer median 34.1x (57.6% cheaper).
Risks
-
Stock trades 10.7% above its 5-year average P/E.
-
Insider ownership is only 1.3% (peer median: 2.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.45x
Forward P/E
9.52x
P/B
2.11x
P/S
1.42x
EV/EBITDA
7.79x
PEG ratio
24.88x
Profitability
How much profit each dollar creates
Gross margin
36.8%
Operating margin
21.4%
Net margin
10.6%
ROE
15.2%
ROA
8.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.68x
Current ratio
2.90x
Quick ratio
2.52x
Total debt
$7.57B
Total cash
$3.60B
Growth
How the business has been compounding
Revenue TTM
$16.20B
Revenue 5Y CAGR
6.0%
EPS TTM
3.80
EPS 5Y CAGR
32.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.62B
Free CF TTM
$2.99B
FCF margin
18.5%
Dividend
Shareholder payout
Yield
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Payout ratio
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Last ex-div date
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