Michael M. Santiago/Getty Images News
Investment Thesis
Looking at the growth numbers over the last couple of years and around a 31% increase in stock price since the lows of November, I decided to forecast revenue growth using a DCF analysis
Fox Corporation: DCF Analysis Reveals Significant Margin Of Safety
Summary
- After a 31% appreciation in stock price since November, is the company overvalued now?
- Tubi’s increase in popularity may become a decent revenue generator in the future.
- Solid financials and plenty of cash on hand tell a story of a well-managed company.
- DCF analysis is saying the company is undervalued even with beaten-down growth assumptions and a decent margin of safety baked in.
MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.