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News Corporation (NWSA) Intrinsic Value & Margin of Safety | SafetyMargin.io

Communication Services › Entertainment

News Corporation (NWSA) Stock Overview

Market Cap: $13.75B

News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses. It operates through five segments: Digital Real Estate Services, Dow Jones, Book Publishing, News Media, and Other.

Mar 19, 2026$23.93

1Y -11.9%

Rewards

★Each dollar of retained earnings has created $3.88 of market value — management is an exceptional capital allocator.
★FCF yield of 12.5% is historically attractive — the business generates significant cash relative to its price.
★Trailing P/E of 31.1x is 32% below the historical average of 45.7x — potentially undervalued relative to its own history.

Risks

⚠Free cash flow has declined at a 12.6% CAGR over the past 4 years — a concerning trend.

NWSA Key Valuation Metrics

Free Cash Flow

$1.72B

FCF Yield

12.50%

Trailing P/E

31.08

Forward P/E

19.26

ROIC

9.39%

ROE

12.47%

Gross Margin

56.67%

PEG Ratio

N/A

Debt / Equity

0.31

Interest Coverage

N/A

Net Debt / EBITDA

0.73

Dividend Yield

0.84%

NWSA Historical Fundamentals

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

NWSA $1 Retained Earnings Test

Market Value

$3.88

created per $1 retained

Exceptional Value Creator

Earning Power

$5.82

created per $1 retained

Exceptional Value Creator

Σ Retained

$1.06B

Δ Market Cap

+$4.13B

Δ Earning Power

+$6.19B

Buffett's "$1 Test": For every $1 retained, how much value did management create?
Market Value = market's verdict (mood-sensitive) · Earning Power = owner earnings / discount rate (mood-independent)

NWSA Discounted Cash Flow (DCF) Analysis

67.8% Margin of Safety

Price is 67.8% below estimated fair value

Current Price: $23.93

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $74.37

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Parameter	Min (Bear)Value	BaseValue	Max (Bull)Value
Initial Cash Flow
Growth Rate (Yr 1-5)	%	%	%
Growth Rate (Yr 6-10)	%	%	%
Terminal Growth Rate	%	%	%
Discount Rate	%	%	%
	Bear Case $44.55 Implied EV: $26.46B	Base Case $74.37 Implied EV: $43.59B	Bull Case $107.32 Implied EV: $62.51B

Reverse DCF — Market-Implied Growth

What growth rate is the market pricing in at $24?

+1.1%

Market-Implied Owner Earnings Growth

Standard FCF implies -4.2%

The market implies +1.1% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -4.2%, reflecting heavy growth investment expected to generate future returns.

NWSA Economic Moat Score

40/100

Narrow Moat

70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving roic consistency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

NWSA Forensic Accounting

-2.38

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

NWSA Management & Board

Mr. Robert J. Thomson

CEO & Director · Age 64

$10.35M

total pay

Ms. Lavanya Chandrashekar

Chief Financial Officer · Age 53

$3.55M

total pay

Mr. David B. Pitofsky

Executive VP & General Counsel · Age 60

$4.15M

total pay

Ms. Ruth Allen

Executive VP & Chief Human Resources Officer · Age 46

$1.98M

total pay

Ms. Marygrace DeGrazio

Chief Accounting Officer · Age 48

Mr. Julian Delany

Executive VP & Chief Technology Officer · Age 52

Mr. Michael Florin

Senior VP & Head of Investor Relations

Mr. Arthur Bochner

Executive VP & Chief Communications Officer

Ms. Anoushka Healy

Executive VP & Chief Strategy Officer

Mr. Michael L. Bunder

Senior VP, Deputy General Counsel & Corporate Secretary

NWSA Ownership

Insiders 0.1%Institutions 106.5%

No. of Institutional Holders844

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

NWSA Insider Buying Activity

0

Buys (3M)

1

Buys (12M)

Total value (12M): $204,986

LGC HOLDCO, LLC

Beneficial Owner of more than 10% of a Class of Security

$204,986

@ $28.77 · 2025-09-10

Open market purchases · includes direct & indirect ownership · excludes option exercises

NWSA Insider Selling Activity

0

Sells (3M)

3

Sells (12M)

Total value (12M): $2.20M

PITOFSKY DAVID B

General Counsel

$1.30M

@ $29.73 · 2025-08-15

DEGRAZIO MARYGRACE

Officer

$316,825

@ $29.94 · 2025-08-15

ALLEN RUTH

Officer

$587,930

@ $29.44 · 2025-08-15

KLINE DAVID R

Chief Technology Officer

$269,626

@ $26.96 · 2024-09-05

PITOFSKY DAVID B

General Counsel

$1.15M

@ $27.47 · 2024-08-15

PANUCCIO SUSAN

Chief Financial Officer

$1.56M

@ $27.33 · 2024-08-15

DEGRAZIO MARYGRACE

Officer

$271,852

@ $27.41 · 2024-08-15

KLINE DAVID R

Chief Technology Officer

$375,729

@ $27.42 · 2024-08-15

ALLEN RUTH

Officer

$196,255

@ $27.44 · 2024-08-15

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

NWSA 🎭 Mr. Market's Mood

😨Fear(40/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

NWSA ⚖️ Buffett Signal

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (40)

NWSA Investment Checklist & Notes

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 3/20/2026, 4:30:20 AM

NWSA Insider Buying Activity

0

Buys (3M)

1

Buys (12M)

Total value (12M): $204,986

LGC HOLDCO, LLC

Beneficial Owner of more than 10% of a Class of Security

$204,986

@ $28.77 · 2025-09-10

Open market purchases · includes direct & indirect ownership · excludes option exercises

NWSA Insider Selling Activity

0

Sells (3M)

3

Sells (12M)

Total value (12M): $2.20M

PITOFSKY DAVID B

General Counsel

$1.30M

@ $29.73 · 2025-08-15

DEGRAZIO MARYGRACE

Officer

$316,825

@ $29.94 · 2025-08-15

ALLEN RUTH

Officer

$587,930

@ $29.44 · 2025-08-15

KLINE DAVID R

Chief Technology Officer

$269,626

@ $26.96 · 2024-09-05

PITOFSKY DAVID B

General Counsel

$1.15M

@ $27.47 · 2024-08-15

PANUCCIO SUSAN

Chief Financial Officer

$1.56M

@ $27.33 · 2024-08-15

DEGRAZIO MARYGRACE

Officer

$271,852

@ $27.41 · 2024-08-15

KLINE DAVID R

Chief Technology Officer

$375,729

@ $27.42 · 2024-08-15

ALLEN RUTH

Officer

$196,255

@ $27.44 · 2024-08-15

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

NWSA Investment Checklist & Notes

Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 3/20/2026, 4:30:20 AM