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The Walt Disney Co DIS Stock Quote

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NYSE: DIS

Morningstar‘s Stock Analysis DIS

Valuation
Currency in USD
DIS is Significantly Undervalued at a 40% Discount.
DIS is 5 at a 40% -40.

1-Star Price

> 209.25

5-Star Price

< 108.50

Economic Moat

Wide

Trend: Stable

Capital Allocation

Standard

Streaming Still the Future for Disney Even With CEO Switch; Lowering FVE to $155

Neil Macker Senior Equity Analyst

Business Strategy and Outlook

| Neil Macker |

We believe Disney is successfully transforming its business to deal with the ongoing evolution of the media industry.

The firm’s direct-to-consumer efforts, Disney+, Hotstar, Hulu, and ESPN+ are taking over as the drivers of long-term growth as the firm transitions to a streaming future. Streaming will benefit from the new content being created at Disney and Fox television and film studios as well as their deep franchise libraries. We expect that Disney+ will continue to leverage this content to create a large, valuable subscriber base. The return of Bob Iger as CEO is not likely to derail this streaming-focused future as he helped to design the strategy prior to leaving the firm.

Disney's media networks segment includes ESPN, ABC, and Fox entertainment channels like FX. ESPN remains the dominant domestic sports television network due to its large array of sports rights and programming. It profits from the highest affiliate fees per subscriber of any cable channel and generates revenue from advertisers interested in reaching adult males ages 18-49, a key demographic. The Disney Channel’s programming consists of internally generated hits. We expect ESPN and Disney Channel will provide the firm with a softer landing than its peers as viewing transfers to a streaming world.

Disney's other components rely on the world-class Disney brand, sought after by children and trusted by parents. Over the past decade, Disney has demonstrated its ability to monetize its characters and franchises across multiple platforms--movies, home video, merchandising, theme parks, and even musicals. This stable of animated franchises will continue to grow as more movies get released by the animated studio and Pixar. Disney also has arranged the Marvel universe to create a series of interconnected films and product tie-ins. With the acquisition of Lucasfilm, the firm has positioned the Star Wars franchise in the same manner. Disney's theme parks and resorts are almost impossible to replicate, especially considering the tie-ins with its franchises and other business lines. We expect Iger to on focus on fixing the customer complaints that have arisen since the reopening.

Key Statistics DIS

Company Profile DIS

Business Description

Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney shifted into a more streaming-focused firm by acquiring the remainder of Hulu and launching Disney+ and ESPN+. Across its streaming platforms, Disney had over 235 million subscribers as of September 2022, up sharply from under 64 million in December 2019.

Contact
500 South Buena Vista Street
Burbank, CA, 91521
Industry Entertainment
Employees 220,000

Related Articles DIS

FAQs for The Walt Disney Co Stock

No. DIS does not currently have a forward dividend yield.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

DIS’s market cap is 168.35 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

DIS’s stock style is Large Growth.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

DIS’s price/sales is 2.04.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

DIS’s price/forward earnings is 22.32.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

DIS’s price/book is 1.77.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See DIS’s valuation ratios compared to the Market Index.

DIS’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare DIS’s historical performance against its industry peers and the overall market.