Jeff Ubben (Trades, Portfolio), CEO and chief investment officer of ValueAct Holding LP, has been a director of Twenty-First Century Fox Inc. Class B (NASDAQ:FOX) since November 2015. On Oct. 3, the guru purchased 3 million shares at $26.06 per share, according to the company’s Form 4 filing with the Securities and Exchange Commission. The insider transaction cost $78.18 million.
Lachlan Murdoch, co-chairman of Twenty-First
Century Fox Inc., left, and James Murdoch, chief executive officer of
Twenty-First Century Fox Inc., arrive for the Allen & Co. Media and
Technology
Conference in Sun Valley, Idaho, U.S., on Tuesday, July 5,
2016. Billionaires, chief executive officers, and leaders from the
technology, media, and finance industries gather this week at the Idaho
mountain resort conference hosted by investment banking firm Allen &
Co. Photographer: David Paul Morris/Bloomberg
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Despite having a modest financial strength rank of 5, Fox has a profitability rank of 8, implying high growth potential. The company has a high Greenblatt return on capital, strong returns on equity, and its operating margin is near a 10-year high. Additionally, Fox’s price-to-book and price-to-salesratios are currently near a three-year low, and its return on invested capital outperforms its WACC.
While the company is slightly overvalued based on its Peter Lynch chart, Fox is undervalued based on its median P/S value and Peter Lynch value.
The former valuation method assumes that the stock valuations revert to
the historical mean P/S value while the latter assumes that the PEG
equals one for fair-valued companies.
See also
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Disclosure: The author has no position in the stocks mentioned in the article.
source - www.forbes.com
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