Psst... News Corp. Stock Is Now Dirt Cheap

alabama dirt

Citigroup points out that in the post-hackgate selling, shares of News Corp. are now incredibly cheap:

 News Corp is trading at 9.8x CY12 without giving credit for nearly $12 billion of cash on balance sheet. P/E after adjusting for cash on balance sheet lowers P/E to 6.6x. Sale of TV stations would keep cash adjusted P/E at 6.6x. Sale of BSkyB would lower cash adjusted CY12 P/E to 6.3x.

Of course, stocks get cheap and keep going lower and lower.

On a related note, Felix Salmon wonders whether News Corp. could end up in play as an acquisition candidate.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at