News (NWSA) has been dropped from the Russell 1000 Dynamic Index, a move that can affect how index funds and quant strategies treat the stock and prompt investors to reassess its profile.

At a share price of US$27.49, News has seen a 12.30% 90 day share price return and a 4.96% year to date share price return, while its 1 year total shareholder return declined 6.61%. This suggests that recent momentum contrasts with a softer longer term picture as index changes and new events like the upcoming WSJ sports economy conference reshape how investors assess its risk and growth profile.

If you are reassessing your portfolio after this index change, it can be useful to look at other areas of the market and see which opportunities stand out, including the 18 top founder-led companies

Bulls see News as mispriced after the index exit and revenue and earnings growth, while bears focus on the weaker 1 year return and index-related selling pressure. Which side do the current valuation metrics support next?

Most Popular Narrative: 21.8% Undervalued

At a last close of $27.49, the most followed narrative on News points to a fair value of $35.18, framing the stock as materially undervalued and putting its digital and information assets at the center of the story.

News Corp's growing portfolio of digital and professional information services (e.g., Dow Jones Risk & Compliance and new B2B data analytics acquisitions) positions it to capture expanding demand for high-quality, business-critical information, future-proofing revenue growth and earnings stability through higher recurring digital subscription and data licensing income.

Read the complete narrative. Read the complete narrative.

Want to understand why this narrative supports a higher fair value for News? It leans heavily on recurring digital revenue, fatter margins, and a richer future earnings multiple than many investors might assume. Curious which growth, margin, and valuation assumptions have been stitched together to reach that conclusion and how sensitive the story is to even small changes in those inputs? The full breakdown lays out the numbers behind that $35.18 figure.

Result: Fair Value of $35.18 (UNDERVALUED)

However, this upbeat narrative around News can be knocked off course if structural pressure on print and legacy media deepens, or if AI related content and licensing disputes weigh on monetisation.

Another View: What News’s P/E Ratio Is Telling You

While the narrative and fair value workup suggest News is undervalued, its P/E of 33.4x looks full against the US Media industry at 23.4x, peers at 25.2x, and a fair ratio of 22.9x. That gap points to valuation risk if sentiment cools, or room for re rating if earnings deliver.

To see how these P/E gaps stack up for News in more detail, including what the fair ratio implies for future valuation swings, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and caution around News resonates with you, take a moment to review the data, stress test the assumptions, and see how the 3 key rewards aligns with your own judgment.

Looking for more investment ideas beyond News?

If News has you rethinking your next move, do not stop there. Use the Simply Wall St screener tools to spot other stocks that fit your goals.

• Target resilient income by reviewing companies we group as 9 dividend fortresses that focus on higher yield potential.
• Hunt for potential mispricings by scanning the 44 high quality undervalued stocks and see which stocks currently stand out on quality and valuation.
• Prioritise resilience by focusing on companies in the 73 resilient stocks with low risk scores that score better on risk factors and financial stability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.