One-glance verdict
Undervalued
$55.64 our estimate vs market $30.03
Wall Street consensus: $36.16 (-35.0% lower than our fair-value estimate)
46% below our estimate, below the bear case
Fundamentals snapshot
News Corporation
NWSA · NMS · Communication Services · Entertainment
Current price
$30.03
52-week range
$22.20 - $31.66
Market cap
$16.18B
Balance sheet
Healthy
13.44x Strong cushion
Net debt $814.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.8% last year.
- Reward Returns 8.0% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.0% (peer median: 1.6%).
What this company does
News Corporation
News Corporation is a company that creates and shares a lot of content like news, books, and property information across the world. The money they make primarily comes from people subscribing to their news services and using their property websites, which shows how important their various media brands are for their earnings. Understanding where their revenue originates helps us see how strong their different business parts are.
How the company got here
News Corporation, often called News Corp, has a long history rooted in publishing, tracing its origins back to Australia in the 1920s. Under the leadership of Rupert Murdoch, it grew from a small newspaper owner into a global media giant. A significant turning point was the company's expansion into the United States in the 1980s, acquiring film studios and launching television networks. In 2013, News Corp underwent a major restructuring, splitting its publishing and entertainment assets. The publishing-focused entity became the current News Corp, while the entertainment and broadcasting assets formed 21st Century Fox. This separation allowed each company to focus on its core businesses and pursue independent strategies.
What it actually does
News Corp is a diversified media and information services company. It creates and distributes content, data, and other products for both consumers and businesses worldwide. You'll encounter its work through various channels, including newspapers, websites, magazines, mobile apps, and podcasts. The company's offerings range from in-depth business news and financial data to consumer books and real estate information. Essentially, News Corp operates across multiple facets of the media landscape, aiming to inform, entertain, and provide essential services to a broad audience.
Dow Jones
The Dow Jones segment is a cornerstone of News Corp, primarily known for its business and financial news. It publishes prestigious outlets like The Wall Street Journal, Barron's, and MarketWatch, providing critical information, data, and analysis to professionals and investors. This segment also includes Dow Jones Risk & Compliance and Factiva, which offer data and tools for businesses to manage risk and access news archives. Dow Jones is a significant revenue generator, largely driven by subscriptions for its premium content and data services, making it a key part of News Corp's information services business.
News Media
This segment encompasses News Corp's extensive portfolio of newspapers and digital news sites across the globe. It includes well-known publications such as The Australian, The Daily Telegraph, Herald Sun in Australia, and The Sun and The Times in the UK, as well as the New York Post in the US. The primary way this segment makes money is through a combination of print and digital subscriptions, as well as advertising. While print circulation has been declining, News Corp is increasingly focusing on growing its digital subscriber base to offset these trends and maintain revenue.
Book Publishing
Under the HarperCollins umbrella, this segment is responsible for publishing a wide array of books, including general fiction, nonfiction, children's books, and religious titles. HarperCollins operates globally, releasing books in both print and digital formats. Its revenue comes from book sales through various retailers and online platforms. This division represents a significant part of News Corp's content creation, bringing stories and knowledge to a vast readership and contributing to the company's diverse revenue streams.
Digital Real Estate Services
This segment focuses on providing property-related services and information through online platforms. Key brands include Realtor.com in the US and REA Group (which operates realestate.com.au and others) in Australia. These platforms connect buyers, sellers, renters, and real estate professionals, offering listings, data, and advertising solutions. The revenue for this segment is generated through advertising, lead generation services for real estate agents, and other property-related services, making it a substantial and growing part of News Corp's business.
What management is betting on now
News Corp's current strategy heavily emphasizes expanding its digital subscription revenue across all its media brands, aiming to reduce reliance on traditional advertising. A key priority is growing the professional information businesses within Dow Jones, focusing on subscription and workflow products for enterprises. Management is also focused on improving monetization in its digital real estate services by enhancing listings and agent tools. Furthermore, the company is working to integrate recent acquisitions and manage the transition of its mature assets, like print newspapers, towards a more digital-first approach.
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.
FY2025 Q1
$-31.00M
FY2025 Q2
$190.00M
FY2025 Q3
$418.00M
FY2025 Q4
$32.00M
FY2026 Q1
$4.00M
FY2026 Q2
$132.00M
FY2026 Q3
$399.00M
FY2026 Q4
$276.00M
Revenue
$2.34B
Net income
$179.00M
Diluted EPS
0.33
Operating cash flow
$422.00M
Free cash flow
$276.00M
Fetching…
Sources
Revenue
$2.19B
Net income
$89.00M
Diluted EPS
0.16
Operating cash flow
$499.00M
Free cash flow
$399.00M
Fetching…
Sources
Revenue
$2.36B
Net income
$193.00M
Diluted EPS
0.34
Operating cash flow
$231.00M
Free cash flow
$132.00M
Fetching…
Sources
Revenue
$2.14B
Net income
$112.00M
Diluted EPS
0.20
Operating cash flow
$85.00M
Free cash flow
$4.00M
Fetching…
Sources
Revenue
$2.11B
Net income
$743.00M
Diluted EPS
1.31
Operating cash flow
$189.00M
Free cash flow
$32.00M
Fetching…
Sources
Revenue
$2.01B
Net income
$103.00M
Diluted EPS
0.18
Operating cash flow
$511.00M
Free cash flow
$418.00M
Fetching…
Sources
Revenue
$2.24B
Net income
$215.00M
Diluted EPS
0.38
Operating cash flow
$252.00M
Free cash flow
$190.00M
Fetching…
Sources
Revenue
$2.58B
Net income
$119.00M
Diluted EPS
0.21
Operating cash flow
$64.00M
Free cash flow
$-31.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $55.64 vs current price $30.03
Wall Street consensus is the average analyst price target: $36.16 (-35.0% lower than our fair-value estimate).
Our most-likely fair value is $55.64 a share — about 85.3% above today's price of $30.03, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $814.0M. Interest coverage 13.4x.
Net debt
$814.00M
Interest coverage
13.44x
News Corporation's profit covers its interest bill about 13.4 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.
Healthy
Worse cushion
Baseline
Better cushion
NWSA
BASELINE
News Corporation
Total debt $2.92B Interest coverage 13.44x This is the baseline the peer rows are being compared against.
Total debt $7.57B Interest coverage 8.72x -35% vs NWSA Carries about 1.5x less debt cushion than NWSA.
Total debt $0.00 Interest coverage 386.21x +2,775% vs NWSA Carries about 28.7x more debt cushion than NWSA.
Total debt $6.77M Interest coverage -7.74x -100% vs NWSA This peer has almost no interest-payment cushion compared with NWSA.
Total debt $2.35B Interest coverage 7.95x -41% vs NWSA Carries about 1.7x less debt cushion than NWSA.
What you should know
The case for and against NWSA
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.8% last year.
-
Returns 8.0% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 1.6%).
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)
29.16x
Forward P/E
19.86x
P/B
1.91x
P/S
1.79x
EV/EBITDA
13.28x
PEG ratio
2.70x
Profitability
How much profit each dollar creates
Gross margin
57.2%
Operating margin
12.5%
Net margin
6.3%
ROE
8.0%
ROA
4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.32x
Current ratio
1.62x
Quick ratio
1.40x
Total debt
$2.92B
Total cash
$2.10B
Growth
How the business has been compounding
Revenue TTM
$9.03B
Revenue 5Y CAGR
-3.4%
EPS TTM
1.03
EPS 5Y CAGR
58.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.24B
Free CF TTM
$811.00M
FCF margin
9.0%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
19.4%
Last ex-div date
2026-09-09