Is News Corp. overvalued or undervalued?

As of 5 August 2025, the valuation grade for News Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is considered overvalued based on its current metrics, including a P/E ratio of 29, a Price to Book Value of 2.41, and an EV to EBITDA of 12.70. In comparison, a peer like News Corp. has a P/E of 29.72 and an EV to EBITDA of 13.94, suggesting that it is trading at a premium relative to its industry peers.
Despite its high valuation, News Corp. has demonstrated strong returns, with a 3-year return of 84.21% compared to the S&P 500's 70.41%, although its 10-year return of 94.69% pales in comparison to the S&P 500's 231.64%. This disparity in long-term performance further reinforces the notion that the stock may be overvalued at its current price of 30.45.