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The Walt Disney Co DIS Stock Quote

| Rating as of

NYSE: DIS

Last close prices updated as of Feb 03, 2023, 7:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 110.71
  • Sector Communication Services
  • Industry Entertainment
  • Investment Style Large Growth
  • Day Range 110.37  –  113.14
  • Year Range 84.07  –  157.50
  • Market Cap 202.2434 Bil
  • Volume / Avg 12.5 Mil /  16.1 Mil
  • Price / Sales 2.45
  • Price / Book 2.13
  • Forward Div Yield
  • Trailing Div Yield 0.79%

Morningstar‘s Stock Analysis DIS

Valuation
Currency in USD
DIS is Undervalued at a 29% Discount.
DIS is 4 at a 29% -29.

1-Star Price

> 209.25

5-Star Price

< 108.50

Economic Moat

Wide

Trend: Stable

Capital Allocation

Standard

Trian Opens Proxy Fight With Disney; We Believe Peltz Could Add Value as a Board Member

Neil Macker Senior Equity Analyst

Analyst Note

| Neil Macker |

Nelson Peltz and his fund, Trian Partners, kicked off a proxy fight with Disney over a board seat for the activist investor. The fund is concerned about numerous perceived issues at Disney, including weak governance, financial underperformance, and poor capital allocation. We suspect that the decision to offer a board seat to Third Point in September pushed the board to resist adding another activist to the lineup. Outside of handing Peltz his desired board seat, we believe this proxy fight was basically inevitable.

While not agreeing with all of Peltz’s objectives or issues, we do think Peltz’s perspective would add value to what has been an insular Disney board. We expect that he will continue to fight until the shareholder vote (likely in March) or he is placed on the board. We maintain our $155 fair value estimate.

In his presentation hosted at RestoretheMagic.com, Peltz outlines his previous successes and the fund’s six objectives. The first is to ensure a successful CEO succession within two years instead of replacing Bob Iger as of now. While this aligns with the company’s current public stance, we still believe that Iger will ultimately extend his stay once again. Trian also wants to cut CEO compensation, which has been relatively high over the last decade, a common complaint in the media industry.

Unlike Daniel Loeb at Third Point, Peltz is not interested in breaking up Disney by spinning out assets like ESPN but is for “reinvigorating the Disney flywheel.” Notably, Trian would turn Disney+ into a niche platform that acts as a secondary, rather than primary, distribution node for the firm’s core franchises. We don’t believe the firm could make this shift in the near term without taking a tremendous financial hit and losing customers, especially outside of the U.S., where it offers a deeper range of content. We view the Disney+ strategy as largely appropriate given the assets that the company owns and the streaming landscape internationally and in the U.S.

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 202.24 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 2.45.
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 26.74.
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 2.13.
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.