Is Walt Disney Company (DIS) overvalued?
On Equity Rank's model estimate, DIS trades 17% below its fair value. Walt Disney Company (DIS) last closed at $116.75; the multi-method model fair value is $140.26.
| Price | Model fair value | Price vs model |
|---|---|---|
| $116.75 | $140.26 | 17% below |
What the answer rests on
- 5 of 11 valuation methods put DIS's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, DIS's free cash flow would need to grow about 9.8% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 111.4% a year.
- DIS trades at 24.5 times its last year's earnings, against a median of 34.2 for 13 profitable Streaming companies.
- Over the past year the price sat below the model fair value on 100% of trading days. The gap ranged from 49% below to 16% below the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind DIS's fair value · What prices assume · Other companies