Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
NewsASX:NWS -1.44%74 Degree of Operating Leverage is 2.85 as of Jun. 2026. GuruFocus rates ASX:NWS with a GF Score™ of 74/100 and a GF Value™ of A$47.42 (Fairly Valued). The stock has 6 warning signs investors should review. Among 988 Media - Diversified companies, News ranks worse than 66.09% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
News's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for News's Degree of Operating Leverage or its related term are showing as below:
ASX:NWS's Degree of Operating Leverage is ranked worse than 66.09% of 988
companies
in the Media - Diversified industry
Industry Median: 0.85
vs ASX:NWS: 2.85
News (ASX:NWS) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
News Degree of Operating Leverage Related Terms
News Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for News's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:NWS vs WMG, TKO, PSKY: Degree of Operating Leverage Comparison
For the Entertainment subindustry, News's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
News Degree of Operating Leverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, News's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where News's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 2.85 mean?
News (ASX:NWS) has a Degree of Operating Leverage of 2.85 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for News and its competitors. According to the industry distribution chart, News ranks #653 out of 988 companies in the Media - Diversified industry, placing it in the top 66.1%.
Is News' Degree of Operating Leverage too high?
News' current Degree of Operating Leverage is 2.85. The Media - Diversified industry median Degree of Operating Leverage is 0.85. News' value of 2.85 is 235.3% above this industry median. Based on the distribution chart, News ranks #653 out of 988 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, News has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does News' Degree of Operating Leverage compare to WMG and TKO?
According to the Media - Diversified industry distribution chart, News ranks #653 out of 988 companies for Degree of Operating Leverage. This places News in the lower half of its industry. The industry median Degree of Operating Leverage is 0.85. News' value of 2.85 is 235.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Media - Diversified company?
The median Degree of Operating Leverage among Media - Diversified companies is 0.85, based on 988 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. News's current Degree of Operating Leverage of 2.85 is 235.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for News and its competitors. For the Media - Diversified industry, the median Degree of Operating Leverage is 0.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. News's current Degree of Operating Leverage is 2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is News stock overvalued right now?
Based on GuruFocus' analysis, News (ASX:NWS) is currently considered Fairly Valued. The stock's GF Value™ is A$47.42, compared to a current price of A$46.56 — trading 1.8% below its estimated fair value. The current Degree of Operating Leverage is 2.85 and 235.3% above the Media - Diversified industry median of 0.85. News' overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For News (ASX:NWS), the current Degree of Operating Leverage is 2.85 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is News (ASX:NWS) Overvalued in 2026?
Based on GuruFocus' analysis, News stock appears to be undervalued.
The current stock price of A$46.56 is trading 1.8% below its estimated GF Value™ of A$47.42.
GuruFocus considers News to be Fairly Valued.
Key valuation signals for ASX:NWS:
Degree of Operating Leverage: 2.85
GF Value™: A$47.42 vs. price of A$46.56 (1.8% below fair value)
Industry Position: 235.3% above the Media - Diversified median (#653 of 988)
No single metric tells the full story. See the ASX:NWS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
News Corporation is a diversified media conglomerate with significant presence in the US, the UK, and Australia. Key mastheads include The Wall Street Journal, Barron's, New York Post, The Times, The Sun, The Australian, Herald Sun, and The Daily Telegraph. Its 61%-owned REA Group is the dominant property listings platform in Australia. In addition, it owns Harper Collins, one of the largest book publishers in the world, and has a sizable US digital property advertising business, Move. The 65% interest in Foxtel, the Australian pay-TV and streaming provider, was sold in April 2025. The sale to global sports streaming platform, DAZN, was struck at more than 7 times Foxtel's EBITDA.
74GF Score
Get the complete analysis for ASX:NWS
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:NWS has been successfully added to your 
