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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Walt Disney Co. To summarize, we found that Walt Disney Co ranked in the 8th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Walt Disney Co ended up being:
Its compound free cash flow growth rate, as measured over the past 5.71 years, is -0.11% -- higher than merely 14.19% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 97% of its sector Consumer Cyclical.
Walt Disney Co's effective tax rate, as measured by taxes paid relative to net income, is at 44 -- greater than 93.53% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DIS, try APTV, PLNT, RSSV, TXRH, and BLBD.
On the heels of its latest quarterly results, toymaker Hasbro's (NASDAQ: HAS) board of directors declared a new quarterly dividend. Hasbro seems very comfortable with that amount; it has paid it in each of the preceding seven quarters. Hasbro's Q2 of fiscal 2020 earnings were released on Monday, revealing a worrying 29% year-over-year revenue decline, and a plunge well into the red on the bottom line (to nearly $34 million, from Q2 2019's $13.4 million profit).