Is Wall Street Undervaluing FOXA Stock?

Here is why we think Fox (FOXA) deserves consideration as a value stock. It is currently trading nearly 0.0% below its 1 year high, and also trading at a PS multiple which is below the average for the last 3 years. However, it has reasonable fundamentals for its level of valuation.

• Reasonable Revenue Growth: 16.6% LTM and 5.7% last 3 year average.
• Cash Generative: Nearly 18.4% free cash flow margin and 19.8% operating margin LTM.
• No Major Margin Shocks: FOXA has avoided any margin collapse in the last 12 months.
• Modest Valuation: Despite encouraging fundamentals, FOXA trades at a PE multiple of 12.5
• Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and better margins

As a quick background, Fox provides news, sports, and entertainment programming through cable networks including national news, business, multi-sport, and live soccer and rugby channels in the United States.

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell FOXA Stock to see if Fox still has an edge that holds up under the hood.

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Stocks Like These Can Outperform. Here Is Data

Below are statistics for stocks with same selection strategy applied between 12/31/2016 and 6/30/2025.

• Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
• Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
• Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 20% with 67% win rate.

But Consider The Risk

That said, FOXA isn’t immune to big drops. It fell 79% during the Global Financial Crisis and 63% in the Dot-Com Bubble. The 2018 correction and Covid sell-off still hit hard, with declines around 41% and 48%. Even the recent inflation shock shaved off about 35%. Strong fundamentals matter, but FOXA shows how volatile stocks can be when markets turn south.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read FOXA Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.