Is News Corp. overvalued or undervalued?

As of 17 October 2025, News Corp. has moved from a fair to a very expensive valuation grade. The company is considered overvalued, given its P/E ratio of 29, which is higher than the peer average of approximately 29.72, and an EV to EBITDA ratio of 12.70, which also exceeds the peer average of 13.94. Additionally, the PEG ratio stands at 0.43, indicating that growth expectations may not justify the current price.
In comparison to its peers, News Corp. is positioned unfavorably, particularly against the industry average metrics. While the company has a dividend yield of 19.40%, its return on equity (ROE) of 8.40% and return on capital employed (ROCE) of 11.58% suggest that it is not generating sufficient returns relative to its valuation. Notably, over the past year, News Corp. has underperformed the S&P 500, with a return of -1.59% compared to the index's 14.08%, reinforcing the notion that the stock may be overvalued.