Fox Corporation (FOX) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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Fox Corporation (FOX)

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Intrinsic Value (DCF)

Current$65.62
Intrinsic$223.40
+240%
$150.64$223.40$361.45
Market implies 1% growth for 5 years
DCF analysis suggests FOX could have 240% upside at 25% growth — verify assumptions match your view.
At $66, the market prices in only 1% growth — below historical 25%, suggesting low expectations.
Range: Bear $151 → Bull $361. Current price implies expectations below the bear case — very conservative expectations.
Discount ↓Growth →21%23%25%27%
8%$276$298$322$348
10%$192$207$223$241
12%$145$156$169$182
14%$116$125$134$144

Bull Case

  • Bull case ($361) offers 451% upside at 30% growth, 9% discount
  • Price below even worst-case scenario — strong margin of safety
  • Market-implied growth (1%) ≤ historical CAGR (25%)

Bear Case

  • Bear case ($151) with 20% growth, 12% discount rate
  • Using 25% growth — aggressive, watch for mean reversion
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5-Year Free Cash Flow Projection

Year 1$3.74B
Year 2$4.66B
Year 3$5.82B
Year 4$7.27B
Year 5$9.07B
Terminal$133.48B

📐 Model Inputs

Growth Rate24.8%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$2.99BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Frequently Asked Questions

Is FOX stock undervalued or overvalued?
🟢 UNDERVALUED

FOX trades at $65.62 vs. our DCF-derived intrinsic value of $185.48, implying +174% upside. At a 10.0% WACC and 24.8% projected FCF growth, the market appears to be underpricing the present value of FOX's future cash flows. The bear case ($120.08) still suggests upside, providing margin of safety.

What is FOX's intrinsic value?

Using a 5-year DCF model: Base FCF of $2.99B, projected at 24.8% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $2.11B net debt and dividing by 0.46B shares: Bear $120.08 | Base $185.48 | Bull $281.79. Current price $65.62 implies +174% to base case.

How is FOX's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 24.8% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($87.62B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 29.3x.