How Much Upside Can Digital Real Estate Growth Drive For News Corp?

News Corp is gradually diversifying its business due to secular headwinds, becoming more reliant on its digital real estate business for growth. There could be greater than 15% upside to our price estimate for News Corp in the next few years if the digital real estate revenues grow at an annual rate of around 10% as opposed to our current forecast of 3%. The tables below show what would cause that upside.

Have more questions about NWSA? See the links below:

• How Has News Corp’s Revenue & EBITDA Composition Changed Over The Past 5 Years?
• How Has News Corp’s Revenue And EBITDA Changed In The Last Five Years?
• What’s News Corp’s Revenue And Gross Margin Breakdown By Segment?
• What Is News Corp’s Fundamental Value Based On Expected 2016 Results?
• What Drove News Corp’s Revenue And EBITDA Growth In 2015?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment / ask questions on the comments section

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for News Corporation.