The Walt Disney Company (DIS) Stock Valuation — DCF Analysis
Entertainment · NYSE
Current Price
$100.04
Intrinsic Value
$130.4
+23.3% margin of safety
COMPETITIVE MOAT
↑Iconic Brands and Characters
Disney's unparalleled library of beloved characters and franchises provides enduring brand recognition and deep emotional connections with consumers globally. This allows for consistent cross-generational appeal and merchandising opportunities.
↑Global Theme Park Dominance
The company operates world-renowned theme parks that are destinations in themselves, creating a significant barrier to entry for competitors. These parks generate substantial recurring revenue and foster brand loyalty.
↑Content Creation and Distribution Powerhouse
Disney's integrated model of creating, producing, and distributing high-quality content across various platforms, including film, television, and streaming, gives it a unique advantage. This control over its intellectual property is a key differentiator.
INVESTMENT RISKS
↓Theme Park Profitability Challenges
Recent reports highlight significant deficits in Paris parks, indicating potential operational inefficiencies or market-specific challenges. Sustaining profitability across all global park locations requires careful management.
↓Intense Streaming Competition
The streaming landscape is highly competitive, with numerous players vying for subscriber attention and market share. Disney+ faces pressure from established and emerging services, impacting subscriber growth and profitability.
↓Reliance on Intellectual Property
While a strength, Disney's heavy reliance on its existing IP can be a risk if new content fails to resonate or if intellectual property rights become contested. Innovation is crucial to avoid stagnation.
Base case
DIS base case valuation
A base case discounted cash flow model for DIS estimates an intrinsic value of about $130.4 per share, against a current price of $100.04. The model assumes 12.3% annual free cash flow growth, a 10.0% discount rate, and a 24x exit multiple.
Intrinsic Value
$130.4
Margin of safety
+23.3%
Expected annual return
+5.4%
Base case assumptions: 12.3% annual growth, 10.0% discount rate, 24x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DIS valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for The Walt Disney Company respond.
Open DCF Calculator for DISCompany Overview
Operating worldwide through its various subsidiaries, The Walt Disney Company (DIS) stands as a prominent global entertainment enterprise. Its vast array of activities is organized into two primary divisions: Disney Media and Entertainment Distribution, and Disney Parks, Experiences and Products. Within its media and entertainment arm, Disney is actively engaged in developing and distributing both cinematic films and television series. This segment encompasses the management of well-known broadcast networks such as ABC, Disney, ESPN, Freeform, FX, Fox, National Geographic, and Star, as well as renowned film studios responsible for productions under banners like Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, and Searchlight Pictures. The company also delivers content directly to consumers through its popular streaming platforms, including Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+. Further activities involve licensing its film and television content to external broadcasters and subscription video-on-demand services, overseeing theatrical releases, home entertainment distribution, and music distribution, staging and licensing live entertainment spectacles, and offering specialized post-production services via Industrial Light & Magic and Skywalker Sound. The "Parks, Experiences and Products" segment manages a celebrated collection of global theme parks and resorts, which notably includes Walt Disney World Resort in Florida, Disneyland Resort in California, Disneyland Paris, Hong Kong Disneyland Resort, and Shanghai Disney Resort. This division also features the Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, Adventures by Disney, and Aulani, a resort and spa located in Hawaii. The company extends its brand presence by licensing its intellectual property to a third party for the operations of the Tokyo Disney Resort. A substantial part of this segment involves consumer products, where Disney licenses its iconic trade names, characters, visual elements, literary works, and other intellectual property for use on a diverse range of merchandise, published materials, and games. Moreover, it sells branded merchandise directly through its retail stores, online platforms, and wholesale channels, and actively develops and publishes various books, comic books, and magazines. The Walt Disney Company was founded in 1923 and is based in Burbank, California.
Financial Metrics — DIS Stock Valuation Data
Revenue/Share (TTM)
$55.08
FCF/Share (TTM)
$4.03
ROIC (TTM)
8.3%
ROE (TTM)
10.3%
P/FCF
24.4x
EV/EBITDA
11.1x
FCF Yield
4.09%
Debt/Equity
0.44x
Based on trailing twelve-month data, DIS shows a free cash flow per share of $4.03 and a ROIC of 8.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 24.4x and FCF yield of 4.09% are important context metrics when evaluating DIS's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of DIS?
The Walt Disney Company currently generates $4.03 in free cash flow per share. At the current price of $100.04, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is DIS undervalued?
DIS trades at a P/FCF ratio of 24.4x with a free cash flow yield of 4.09%. This P/FCF is in a moderate range. However, whether DIS is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value DIS stock using DCF?
To perform a DCF valuation on The Walt Disney Company: (1) Start with the trailing free cash flow per share ($4.03) as the base, (2) project future FCF growth over 5-10 years based on Entertainment industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DIS's risk profile — with a debt-to-equity of 0.44x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to DIS?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The Walt Disney Company, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Entertainment trends, then discounting those amounts to today's dollars. DIS's ROIC of 8.3% shows moderate capital returns.
How does WACC affect DIS stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DIS, with a debt-to-equity ratio of 0.44x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 11.1x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See DIS PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Communication Services valuationsDCF and P/E value DIS with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.