Disney Stock Valuation

DIS
 Stock
  

USD 122.67  0.14  0.11%   

How much is Walt Disney worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Disney, is its stock price multiplied by the total number of shares outstanding, calculating Disney's enterprise value requires a different approach. It uses Disney's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Disney Enterprise Value is relatively stable at the moment as compared to the past year. Disney reported last year Enterprise Value of 169.99 Billion. As of 08/18/2022, Tangible Asset Value is likely to grow to about 63.7 B, while Free Cash Flow is likely to drop slightly above 7 B.
Walt Disney shows a prevailing Real Value of $142.79 per share. The current price of the firm is $122.67. At this time, the firm appears to be undervalued. Our model computes the value of Walt Disney from reviewing the firm fundamentals such as Current Valuation of 278.53 B, return on equity of 3.44 %, and Operating Margin of 14.70 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Disney Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Disney's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Disney Most Recent Valuation Data

Price Book
2.37
EPS Estimate Next Quarter
0.85
Price Sales
2.81
EBITDA
11.9 B
Ex Dividend Date
2019-12-13
Beta
1.25
Undervalued
Today 122.67
Please note that Disney's price fluctuation is very steady at this time. Calculation of the real value of Walt Disney is based on 3 months time horizon. Increasing Disney's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Walt Disney is useful when determining the fair value of the Disney stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Disney. Since Disney is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Disney Stock. However, Disney's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
110.57
Downside
142.79
Real Value
144.99
Upside
Estimating the potential upside or downside of Walt Disney helps investors to forecast how Disney stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Disney more accurately as focusing exclusively on Disney's fundamentals will not take into account other important factors:
Earnings
Estimates (13)
LowProjected EPSHigh
3.344.204.97
Details
Hype
Prediction
LowEstimated ValueHigh
121.59123.79125.99
Details
Naive
Forecast
LowNext ValueHigh
129.48131.68133.88
Details
18 Analysts
Consensus
LowTarget PriceHigh
137.00197.13229.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Disney's intrinsic value based on its ongoing forecasts of Disney's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Disney's closest peers. When choosing an evaluation method for Walt Disney, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Disney Investments

3.52 Billion

Disney Valuation Drivers Correlation

Many accounts on the financial statements of Walt Disney are highly interrelated and sometimes correlated. Consequently, when conducting Disney's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Disney
Click cells to compare fundamentals

Disney Valuation Trend

Knowing Disney's actual value is paramount for traders to make sound investment determinations. Disney's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Disney's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Disney's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Disney Market Cap

Walt Disney is rated # 2 in market capitalization category among related companies. Market capitalization of Entertainment industry is currently estimated at about 447.78 Billion. Disney totals roughly 223.89 Billion in market capitalization claiming about 50% of equities under Entertainment industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

Disney Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Disney's current stock value. Our valuation model uses many indicators to compare Disney value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Disney competition to find correlations between indicators driving Disney's intrinsic value. More Info.
Walt Disney is rated # 2 in last dividend paid category among related companies. It is rated # 2 in price to sales category among related companies fabricating about  3.14  of Price to Sales per Last Dividend Paid. As of 08/18/2022, Price to Sales Ratio is likely to grow to 3.18. Comparative valuation analysis is a catch-all model that can be used if you cannot value Disney by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Disney's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Disney's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Disney's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Disney and how it compares across the competition.

About Disney Valuation

The stock valuation mechanism determines the current worth of Walt Disney on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Walt Disney. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Walt Disney based exclusively on its fundamental and basic technical indicators. By analyzing Disney's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Disney's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Disney. We calculate exposure to Disney's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Disney's related companies.
Fiscal Year End
September
Industry
Entertainment
Concentration
Movies & Entertainment
Full Time Employees
152 K
Service Category
Entertainment
Employer Id Number
95-4545390
Last ReportedProjected for 2022
Gross Profit24.8 B23.6 B
Profit Margin 0.16  0.14 
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The Walt Disney Company was founded in 1923 and is based in Burbank, California. Disney operates under Entertainment classification in the United States and is traded on New York Stock Exchange. It employs 152000 people.

Disney Quarterly Enterprise Value

213.87 Billion

Disney Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Disney does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.87
Earnings Quarterly Growth53.50%
Revenue Growth26.30%
Enterprise Value To Ebitda23.35
Earnings Growth54.80%
Enterprise Value To Revenue3.43

Disney Current Valuation Indicators

Valuation refers to the process of determining the present value of Walt Disney and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Disney we look at many different elements of the entity such as Disney's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Disney's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Disney's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Disney, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Disney's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Disney's worth.
Continue to Investing Opportunities. Note that the Walt Disney information on this page should be used as a complementary analysis to other Disney's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Complementary Tools for Disney Stock analysis

When running Walt Disney price analysis, check to measure Disney's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Disney is operating at the current time. Most of Disney's value examination focuses on studying past and present price action to predict the probability of Disney's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Disney's price. Additionally, you may evaluate how the addition of Disney to your portfolios can decrease your overall portfolio volatility.
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Is Disney's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Disney. If investors know Disney will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Disney listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.55
Market Capitalization
227.8 B
Quarterly Revenue Growth YOY
0.26
Return On Assets
0.0209
Return On Equity
0.0344
The market value of Walt Disney is measured differently than its book value, which is the value of Disney that is recorded on the company's balance sheet. Investors also form their own opinion of Disney's value that differs from its market value or its book value, called intrinsic value, which is Disney's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Disney's market value can be influenced by many factors that don't directly affect Disney's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Disney's value and its price as these two are different measures arrived at by different means. Investors typically determine Disney value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Disney's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.