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In January 2024, InvestingPro’s Fair Value models identified a significant mispricing in Fox Corporation (NASDAQ:FOXA) shares, demonstrating the power of sophisticated valuation analysis in uncovering market opportunities. The subsequent performance of Fox stock has validated this analysis, delivering exceptional returns for investors who recognized the value gap. For investors seeking similar opportunities, InvestingPro maintains a regularly updated Most undervalued list featuring stocks with significant upside potential.
Fox Corporation, a leading media company known for its news and sports programming, showed strong fundamentals when InvestingPro’s models flagged it as undervalued. At the time, the company reported revenues of $14.6 billion and EBITDA of $2.7 billion, despite experiencing somewhat challenging market conditions with negative monthly returns in the preceding half-year.
The Fair Value analysis identified an estimated upside of 35.61% from the then-trading price of $31.14. This projection proved conservative, as Fox shares have since surged to $56.14, representing a remarkable 72.41% return in just 19 months. The company’s fundamental performance has supported this price appreciation, with current revenues reaching $16.3 billion and EBITDA growing to $3.5 billion.
Recent developments have validated InvestingPro’s bullish thesis. Fox reported strong fourth-quarter results with 6% revenue growth, while its Super Bowl LIX broadcast generated over $800 million in ad revenue and achieved record viewership of 126 million in the U.S. Additionally, FOX News has maintained its dominant position, leading YouTube as the top news brand in early 2025.
InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, comparable company metrics, and market-based indicators. This comprehensive approach helps investors identify stocks trading significantly below their intrinsic value, as demonstrated by the Fox Corporation case study.
The success of this analysis showcases the value of professional-grade investment tools in identifying market opportunities. InvestingPro offers investors access to these sophisticated valuation models, along with real-time alerts, extensive financial data, and professional-grade analysis tools. As Fox Corporation’s performance demonstrates, having access to comprehensive financial analysis can lead to substantial investment returns.