Looking at valuations for both News Corp and REA Group ((REA)), UBS estimates the latter comprises 63% of the former’s market value.
This calculation implies a valuation of around $11.90 per share for all of News Corp’s other assets, well shy of the $20.03 valuation the analyst ascribes. The Buy rating and $42.50 target are unchanged.
Sector: Media.
Target price is $42.50.Current Price is $29.69. Difference: $12.81 – (brackets indicate current price is over target). If NWS meets the UBS target it will return approximately 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
