Is News Corp. overvalued or undervalued?

As of 8 May 2025, News Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 29, which is slightly below the industry average of 30.18, while the EV to EBITDA ratio is 12.70, indicating a premium compared to peers like The New York Times Co., which has an EV to EBITDA of 19.29. Additionally, the PEG ratio of 0.43 suggests that the stock may be undervalued in terms of growth potential, but this is offset by the high P/B ratio of 2.41.
In comparison to its peers, News Corp.'s return on equity (ROE) is 8.40%, which is lower than the industry average, indicating less efficiency in generating profits from equity. The dividend yield of 19.40% is attractive, but the overall valuation metrics suggest that the stock is overvalued given its current price of 28.86. Recent performance shows that News Corp. has outperformed the S&P 500 over the last three years, with a return of 89.37% compared to the index's 58.74%, but this does not sufficiently justify its current valuation status.