In Large Cap Media Space, Fox Looks Undervalued | Value Investing News

In Large Cap Media Space, Fox Looks Undervalued

  • Fox recently reported their latest fiscal year results and booked revenue north of $11 billion, EBITDA above $2.6 billion, and free cash flow per share of $3.69.
  • While this is not a high growth, high return situation, paying less than 10x EBITDA for the franchise, which does not factor in assets such as the Roku stake (worth $750 million and rising) or operational upside from any of the company’s strategic investments, seems like a bargain.
  • With rising per-share cash flow and the potential for multiple expansion (why can’t this company trade for 10-12x EV/EBITDA?
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