Walt Disney operates as an entertainment company worldwide. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The company was founded in 1923 and is based in Burbank, California.
DIS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Walt Disney Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Walt Disney Co ranked in the 7th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Walt Disney Co, consider:
The company's compound free cash flow growth rate over the past 5.56 years comes in at -0.11%; that's greater than merely 12.91% of US stocks we're applying DCF forecasting to.
Walt Disney Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.45. This coverage rate is greater than that of only 23.21% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Walt Disney Co experienced a tax rate of about 2796% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 99.75% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KMX, AEO, BYD, HGV, and JAKK can be thought of as valuation peers to DIS, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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