I had a look again at REA, as it is still a large part of News...

I had a look again at REA, as it is still a large part of News Corp's valuation and probably the reason for the weakness of News Corp share price since it published its results.

As discussed before with @leasx in the other thread "off to the races" (on 13/3/21), it remains difficult to value REA.
Of course, we can use its market capitalization, but it does not necessarily represent a fair value of REA.
Based on its FY 21 results, REA is valued with a PE of over 60 x and an EV/EBITDA around 35 x.
It looks high based on all its existing metrics (trend of growth, free cash flow yield...).
But it is also true that REA can probably improve a lot its monetization in the future : still real ability to increase prices and get more revenues from data or mortgage origination.

Overall, it probably means that REA's share price may remain volatile, as long as we do not have a better view of its monetisation potential.
The volatility of REA has an impact on NWS' share price volatility.
However, this risk looks quite well discounted as NWS has a free cash flow yield of more than 5 % and a sum of the parts of 50 $ per share (vs a share price around 31 $).