Is Disney Stock a Good Investment?
Disney Investment Advice | DIS |
- Examine Disney's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Disney's leadership team and their track record. Good management can help Disney navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Disney's business and its evolving consumer preferences.
- Compare Disney's performance and market position to its competitors. Analyze how Disney is positioned in terms of product offerings, innovation, and market share.
- Check if Disney pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Disney's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Walt Disney stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Walt Disney is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Disney Stock
Researching Disney's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 70.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.96. Some equities with similar Price to Book (P/B) outperform the market in the long run. Walt Disney has Price/Earnings To Growth (PEG) ratio of 0.97. The entity last dividend was issued on the 8th of July 2024. The firm had 10000:9865 split on the 13th of June 2007.
To determine if Disney is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Disney's research are outlined below:
| About 70.0% of the company shares are held by institutions such as insurance companies | |
| On 16th of January 2025 Disney paid $ 0.5 per share dividend to its current shareholders | |
| Latest headline from cnbc.com: Daily Open Back-to-back gains in stocks signal calm, but listen to Fed officials |
Disney Quarterly Long Term Debt |
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Disney uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Walt Disney. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Disney's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of May 2024 Upcoming Quarterly Report | View | |
| 14th of August 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 13th of November 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Disney's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Disney's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2001-11-08 | 2001-09-30 | 0.07 | 0.06 | -0.01 | 14 | ||
2003-11-20 | 2003-09-30 | 0.15 | 0.17 | 0.02 | 13 | ||
2003-07-31 | 2003-06-30 | 0.16 | 0.19 | 0.03 | 18 | ||
2002-04-25 | 2002-03-31 | 0.1 | 0.13 | 0.03 | 30 | ||
2001-04-24 | 2001-03-31 | 0.14 | 0.17 | 0.03 | 21 | ||
2001-02-06 | 2000-12-31 | 0.25 | 0.28 | 0.03 | 12 | ||
2000-11-09 | 2000-09-30 | 0.17 | 0.2 | 0.03 | 17 | ||
2005-08-09 | 2005-06-30 | 0.38 | 0.42 | 0.04 | 10 |
Disney Target Price Consensus
Disney target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Disney's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 32 | Strong Buy |
Most Disney analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Disney stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Walt Disney, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationDisney Target Price Projection
Disney's current and average target prices are 110.86 and 123.99, respectively. The current price of Disney is the price at which Walt Disney is currently trading. On the other hand, Disney's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Disney Market Quote on 7th of February 2025
Target Price
Analyst Consensus On Disney Target Price
Disney Analyst Ratings
Disney's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Disney stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Disney's financials, market performance, and future outlook by experienced professionals. Disney's historical ratings below, therefore, can serve as a valuable tool for investors.Know Disney's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Disney is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Walt Disney backward and forwards among themselves. Disney's institutional investor refers to the entity that pools money to purchase Disney's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Charles Schwab Investment Management Inc Usd | 2024-09-30 | 10.4 M | Charles Schwab Investment Management Inc Usd | 2024-09-30 | 10.4 M | Vanguard Group Inc | 2024-09-30 | 155.2 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 40.1 M | Fmr Inc | 2024-09-30 | 34.4 M | State Farm Mutual Automobile Ins Co | 2024-09-30 | 30.1 M | Bank Of America Corp | 2024-09-30 | 19.4 M | Jennison Associates Llc | 2024-12-31 | 19.2 M | Amundi | 2024-09-30 | 18.3 M | Legal & General Group Plc | 2024-09-30 | 14.1 M | Amvescap Plc. | 2024-09-30 | 12.7 M |
Disney's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 202.64 B.Market Cap |
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Disney's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.05 | 0.05 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.02 | 0.02 |
Determining Disney's profitability involves analyzing its financial statements and using various financial metrics to determine if Disney is a good buy. For example, gross profit margin measures Disney's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Disney's profitability and make more informed investment decisions.
Disney's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Disney's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Walt Disney. Check Disney's Beneish M Score to see the likelihood of Disney's management manipulating its earnings.
Evaluate Disney's management efficiency
Walt Disney has Return on Asset of 0.0362 % which means that on every $100 spent on assets, it made $0.0362 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0546 %, implying that it generated $0.0546 on every 100 dollars invested. Disney's management efficiency ratios could be used to measure how well Disney manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.02 in 2025. Return On Capital Employed is likely to drop to 0.05 in 2025. At this time, Disney's Total Assets are comparatively stable compared to the past year. Non Current Assets Total is likely to gain to about 206.5 B in 2025, whereas Other Assets are likely to drop slightly above 10.5 B in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 61.82 | 64.91 | |
| Tangible Book Value Per Share | 12.52 | 13.14 | |
| Enterprise Value Over EBITDA | 15.86 | 9.75 | |
| Price Book Value Ratio | 1.49 | 1.42 | |
| Enterprise Value Multiple | 15.86 | 9.75 | |
| Price Fair Value | 1.49 | 1.42 | |
| Enterprise Value | 113.3 B | 119 B |
The operational strategies employed by Disney management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Basic technical analysis of Disney Stock
As of the 7th of February, Disney shows the Risk Adjusted Performance of 0.1515, semi deviation of 0.675, and Downside Deviation of 0.9972. Walt Disney technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Walt Disney downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Walt Disney is priced favorably, providing market reflects its regular price of 110.86 per share. Given that Disney has jensen alpha of 0.2356, we urge you to verify Walt Disney's prevailing market performance to make sure the company can sustain itself at a future point.Disney's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Disney insiders, such as employees or executives, is commonly permitted as long as it does not rely on Disney's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Disney insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Sonia Coleman over six months ago Disposition of 1857 shares by Sonia Coleman of Disney at 121.92 subject to Rule 16b-3 |
Disney's Outstanding Corporate Bonds
Disney issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Walt Disney uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Disney bonds can be classified according to their maturity, which is the date when Walt Disney has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| DIS 85 23 FEB 25 Corp BondUS254687DB98 | View | |
| US254687DD54 Corp BondUS254687DD54 | View | |
| DIS 77 30 OCT 25 Corp BondUS254687DF03 | View | |
| DISNEY WALT NEW Corp BondUS25468PCP99 | View | |
| DISNEY WALT NEW Corp BondUS25468PCR55 | View | |
| US254687DH68 Corp BondUS254687DH68 | View | |
| Dana 575 percent Corp BondUS235822AB96 | View | |
| DISNEY WALT NEW Corp BondUS25468PBW59 | View |
Understand Disney's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Disney's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1515 | |||
| Market Risk Adjusted Performance | 8.82 | |||
| Mean Deviation | 0.9227 | |||
| Semi Deviation | 0.675 | |||
| Downside Deviation | 0.9972 | |||
| Coefficient Of Variation | 563.0 | |||
| Standard Deviation | 1.4 | |||
| Variance | 1.95 | |||
| Information Ratio | 0.1077 | |||
| Jensen Alpha | 0.2356 | |||
| Total Risk Alpha | 0.0907 | |||
| Sortino Ratio | 0.1508 | |||
| Treynor Ratio | 8.81 | |||
| Maximum Drawdown | 8.66 | |||
| Value At Risk | (1.48) | |||
| Potential Upside | 2.05 | |||
| Downside Variance | 0.9943 | |||
| Semi Variance | 0.4556 | |||
| Expected Short fall | (1.03) | |||
| Skewness | 1.9 | |||
| Kurtosis | 6.63 |
| Risk Adjusted Performance | 0.1515 | |||
| Market Risk Adjusted Performance | 8.82 | |||
| Mean Deviation | 0.9227 | |||
| Semi Deviation | 0.675 | |||
| Downside Deviation | 0.9972 | |||
| Coefficient Of Variation | 563.0 | |||
| Standard Deviation | 1.4 | |||
| Variance | 1.95 | |||
| Information Ratio | 0.1077 | |||
| Jensen Alpha | 0.2356 | |||
| Total Risk Alpha | 0.0907 | |||
| Sortino Ratio | 0.1508 | |||
| Treynor Ratio | 8.81 | |||
| Maximum Drawdown | 8.66 | |||
| Value At Risk | (1.48) | |||
| Potential Upside | 2.05 | |||
| Downside Variance | 0.9943 | |||
| Semi Variance | 0.4556 | |||
| Expected Short fall | (1.03) | |||
| Skewness | 1.9 | |||
| Kurtosis | 6.63 |
Consider Disney's intraday indicators
Disney intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Disney stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 133987.0 | |||
| Daily Balance Of Power | (0.71) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 111.68 | |||
| Day Typical Price | 111.41 | |||
| Price Action Indicator | (1.44) | |||
| Period Momentum Indicator | (1.23) |
Disney Corporate Filings
8K | 5th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 23rd of January 2025 Other Reports | ViewVerify | |
F4 | 22nd of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 22nd of November 2024 Other Reports | ViewVerify |
Disney Stock media impact
Far too much social signal, news, headlines, and media speculation about Disney that are available to investors today. That information is available publicly through Disney media outlets and privately through word of mouth or via Disney internal channels. However, regardless of the origin, that massive amount of Disney data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Disney news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Disney relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Disney's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Disney alpha.
Disney Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Disney can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Walt Disney Historical Investor Sentiment
Investor biases related to Disney's public news can be used to forecast risks associated with an investment in Disney. The trend in average sentiment can be used to explain how an investor holding Disney can time the market purely based on public headlines and social activities around Walt Disney. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Disney's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Disney and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Disney news discussions. The higher the estimate score, the more favorable the investor's outlook on Disney.
Disney Maximum Pain Price Across April 17th 2025 Option Contracts
Disney's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Disney close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Disney's options.
Disney Corporate Directors
| Mark Parker | Independent Director | Profile | |
| Francis deSouza | Independent Director | Profile | |
| Amy Chang | Independent Director | Profile | |
| Derica Rice | Independent Director | Profile |
Additional Tools for Disney Stock Analysis
When running Disney's 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 the 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.