Services-Miscellaneous Amusement & Recreation · SIC 7990

Walt Disney Co

DIS

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Latest revenue

$25.17B

as of 2026-03-28

Latest net income

$2.25B

as of 2026-03-28

Net margin

8.9%

as of 2026-03-28

Community sentiment

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DIS vs S&P 500 · rebased to 100

-10.9% / yr 30.6 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 43.8% total
Compare:

Live market

delayed ≤15 min
$99.33
Market cap
$172.50B
Enterprise value
$214.17B
P/E (trailing)
13.9×
Forward P/E
P/B
1.59×
Dividend yield
2.0%
52-wk high
$124.69
52-wk low
$92.19
Beta
Shares out
1.74B

What this company does

AI

Disney operates a global media and entertainment empire spanning streaming services (Disney+, Hulu), traditional TV networks, ESPN sports, film studios, and theme parks across three segments: Entertainment, Sports, and Experiences. The company generates roughly 89% of revenue from services—subscriptions, theme park admissions, advertising, and content licensing—with the remainder from consumer products and merchandise. Disney is consolidating its streaming distribution position, recently absorbing FuboTV in October 2025 while running its Indian operations through a 37%-owned joint venture with Reliance.

Generated from DIS's filing dated 2025-11-13

Key risks

AI
  • Operating cash flow collapsed 77% YoY to $735M from $3.2B, driven by $1.4B tax outflow and working capital drag despite flat net income.
  • Leverage rising: current borrowings jumped to $10.8B from $6.7B, with $4B net commercial paper drawn to fund $2B buybacks and Fubo deal.
  • EPS fell to $1.34 from $1.40 despite 5% revenue growth, as cost of services rose 8.8%, signaling margin compression in core Services business.

Generated from DIS's filing dated 2025-11-13

6.6
of 10

ActaClear Score

Above avg
#7 of 24 in Services-Miscellaneous Amusement & Recreation
+0.1 · 5d
Profitability·25%
8.3
Growth·15%
5.2
Value·20%
8.0
Quality·20%
7.4
Momentum·20%
3.5

Computed from 5 years of SEC fundamentals + latest market data, ranked within Services-Miscellaneous Amusement & Recreation (24 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

0.66
Price / FV

Fair value · DCF

Deeply undervalued
~52% upside at this growth
7.6% / yr
-5%30%
Terminal growthWACC 8.9% · 10y forecast
Market-implied growth at today's price: 2.8% / yrfor 10 years, holding WACC 8.9% and terminal 2.5%.
Current price
$99.74
DCF fair value
$151
FCF base (last FY)
$12.40B
Net debt
$29.62B
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does DIS's current valuation compare to its own past?

Current P/E
13.9×
Own 5y average
40.3×
Own 5y median
42.8×
vs. own average
-65%
Industry 5y avg P/E
19.0×
Median P/E across the top 20 peers in Services-Miscellaneous Amusement & Recreation by market cap, then averaged across 5 years.
vs. industry
-27%
PEG (this co.)
1.82
5y revenue CAGR
7.6%
Industry PEG
1.39
Industry 5y avg growth
13.7%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.