The Walt Disney Company (DIS) Fair Value & PE Analysis
Entertainment · NYSE
Current Price
$100.04
PE Ratio (TTM)
15.7x
Intrinsic Value
$147.13
+32.0% margin of safety
What Is The Walt Disney Company's Fair Value?
As of 2026-06-12, applying a 16.0x earnings multiple to The Walt Disney Company's (DIS) earnings per share of $6.36 yields a fair value estimate of $147.13 per share, versus a market price of $100.04.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $116.21 to $182.64. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · DIS intrinsic value (DCF view)
Is The Walt Disney Company (DIS) Overvalued?
At $100.04, DIS trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
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 PE valuation
Intrinsic Value
$147.13
Margin of safety
+32.0%
Expected annual return
+8.0%
Base case assumptions: 12.4% annual earnings growth, 16x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DIS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Walt Disney Company respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
15.7x
PEG Ratio
0.57
Earnings Yield
6.35%
ROE (TTM)
10.3%
Revenue/Share (TTM)
$55.08
Dividend Yield
1.25%
Debt/Equity
0.44x
Frequently Asked Questions
What is the PE ratio of DIS?
The trailing twelve-month PE ratio of DIS reflects how much investors pay per dollar of The Walt Disney Company's earnings. This metric is most useful when compared to Entertainment peers and the company's own historical range.
Is DIS overvalued based on PE ratio?
DIS's PE of 15.7x combined with a PEG ratio of 0.57 provides a growth-adjusted perspective. A PEG below 1.0 suggests DIS may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Entertainment, a DCF analysis may be more appropriate.
How do I value DIS stock using PE ratio?
To value The Walt Disney Company using PE: (1) Compare the current PE (15.7x) against the Entertainment median to assess relative pricing, (2) check the PEG ratio (0.57) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of DIS?
DIS's PEG ratio is 0.57, calculated by dividing the PE ratio (15.7x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DIS stock valuation?
PE ratio gives a quick relative read — how DIS is priced versus Entertainment peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See DIS DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value DIS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.