THE WALT DISNEY COMPANY, together with its subsidiaries, is a diversified worldwide entertainment company with operations in three segments: Entertainment, Sports and Experiences.
Listed on New York Stock Exchange THE WALT DISNEY COMPANY with ticker symbol DIS and Headquartered at the Walt Disney Studios, California.
Revenue for the fiscal year 2023 increased by 7% and reached to $88.9 billion and net income attributable to Disney decreased to $2.4 billion compared to $3.1 billion in the prior year.
FCFE Details of THE WALT DISNEY COMPANY, shown below, US$ in millions, except per share data
|
Year |
Value |
FCFE or Terminal Value |
Present Value at 17.59% |
|
0 |
FCFE0 |
4769 |
4769 |
|
1 |
FCFE1 |
4922 |
4158 |
|
2 |
FCFE2 |
5223 |
3742 |
|
3 |
FCFE3 |
5693 |
3461 |
|
4 |
FCFE4 |
6370 |
3289 |
|
5 |
FCFE5 |
7312 |
3209 |
|
5 |
Terminal Value (TV5) |
324095 |
22628 |
|
Intrinsic value of THE WALT DISNEY COMPANY |
$166781 Million |
|
Market cap of THE WALT DISNEY COMPANY |
$195.726 Billion |
|
Intrinsic value of THE WALT DISNEY COMPANY. common stock (per share) |
$91.94 |
|
Current share price on 01/13/2025 |
$108.08 |
Required rate of Return
Assumptions
|
Rate of return on LT Treasury Composite(Rf) |
4.36% |
|
Expected rate of return on market portfolio(E(RM) |
13.81% |
|
Systematic risk of THE WALT DISNEY COMPANY, Common stock (β) |
1.4 |
|
Required rate of return on THE WALT DISNEY COMPANY, Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +1.4[13.81% - 4.36%] |
17.59% |
FCFE Growth rate Forecast
THE WALT DISNEY COMPANY, H-Model
|
Year |
Value |
Growth Rate |
|
1 |
g1 (PRAT Model) |
3.22% |
|
2 |
g2 (Linear Interpolation) |
6.11% |
|
3 |
g3 (Linear Interpolation) |
9.00% |
|
4 |
g4 (Linear Interpolation) |
11.89% |
|
5 |
g5 (Single stage model) |
14.79% |
Financial year 2023 Ratio Calculations
|
Retention rate |
100% |
|
Profit margin |
3.81% |
|
Asset turnover |
0.43 |
|
Financial Leverage |
1.98 |
|
Return on Asset |
1.64% |
|
Current Ratio |
1.05 |
|
Return on Equity |
3.26% |
|
EPS |
1.29 |
|
PE Ratio |
83.78 |
Sources : Form 10K of THE WALT DISNEY COMPANY, for the fiscal year 2023 https://thewaltdisneycompany.com/investor-relations/ , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/
Disclosures
This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.
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