Reassessing News (NWSA) Valuation After Recent Share Price Weakness

Assessing recent moves in News stock

News (NWSA) has drifted lower over the past 3 months, even though revenue and net income are still growing. This sets up an interesting disconnect between the stock price and fundamentals.

See our latest analysis for News.

Zooming out, the share price has slid from recent highs to around $25.89. That weaker short term share price return contrasts sharply with a still impressive multi year total shareholder return, suggesting momentum has cooled as investors reassess the risk reward trade off.

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With revenue and earnings still climbing and the share price lagging, analysts see meaningful upside to their targets. But is the current weakness a genuine value gap, or is the market already factoring in News upcoming growth?

Most Popular Narrative: 29.4% Undervalued

With the narrative fair value sitting around $36.69 versus a $25.89 last close, the valuation case leans heavily on recurring digital growth and margin expansion.

Content licensing and anticipated AI/data partnership deals are creating new diversified revenue streams, leveraging News Corp's high-value intellectual property in an environment where digital and AI content consumption is rapidly expanding, supporting incremental revenue and long-term earnings growth.

Read the complete narrative.

Curious how steady top line growth, rising margins, and richer data licensing combine to support that higher value. Want to see the exact earnings path behind it.

Result: Fair Value of $36.69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained print decline and weaker engagement at key digital properties could stall growth and undermine the optimistic licensing and margin expansion narrative.

Find out about the key risks to this News narrative.

Another Angle on Valuation

On earnings, News looks anything but cheap. It trades on about 30.5 times earnings, almost double the US Media industry at 15.9 times and well above peers at 18.9 times. The fair ratio of 20.2 times hints the market could eventually price in downside instead of upside.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own News Narrative

If you see things differently or want to dig into the numbers yourself, you can build a custom view in under three minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding News.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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