The Walt Disney Company (DIS) Fair Value & PE Analysis
Entertainment · NYSE
Current Price
$109.07
PE Ratio (TTM)
22.4x
Intrinsic Value
$106.34
-2.6% margin of safety
What Is The Walt Disney Company's Fair Value?
As of 2026-10-28, applying a 22.0x earnings multiple to The Walt Disney Company's (DIS) earnings per share of $4.96 yields a fair value estimate of $106.34 per share, versus a market price of $109.07.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $86.85 to $128.73. 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 the PE model works · Recalculate in PE mode · DIS intrinsic value (DCF view)
Is The Walt Disney Company (DIS) Overvalued?
At $109.07, DIS trades about 2.6% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Iconic Brand & IP Portfolio
Disney's unparalleled collection of beloved characters and franchises creates immense brand loyalty. This strong intellectual property fuels demand across theme parks, movies, and merchandise.
↑Global Theme Park Dominance
Disney's theme parks offer unique, immersive experiences with high switching costs for consumers. Their scale and reputation create a significant barrier to entry for competitors.
↑Integrated Entertainment Ecosystem
Disney effectively leverages its content across multiple platforms, from streaming to theatrical releases and merchandise. This synergy enhances customer engagement and revenue streams.
INVESTMENT RISKS
↓Shifting Consumer Preferences
Evolving tastes and entertainment consumption habits pose a risk to Disney's traditional business models. Adapting to new trends is crucial for sustained relevance.
↓Economic Sensitivity of Parks & Experiences
Disney's theme parks and cruise lines are discretionary spending, making them vulnerable to economic downturns. Recessions can significantly impact attendance and revenue.
↓Regulatory Scrutiny & Antitrust Concerns
Disney's significant market share in various entertainment sectors could attract increased regulatory oversight. Potential antitrust actions could impact future acquisitions or business practices.
Base case
DIS base case PE valuation
Intrinsic Value
$106.34
Margin of safety
-2.6%
Expected annual return
-0.5%
Base case assumptions: 4.6% annual earnings growth, 21.99x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
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)
22.4x
PEG Ratio
n/m
Earnings Yield
4.54%
ROE (TTM)
7.9%
Revenue/Share (TTM)
$56.88
Dividend Yield
1.38%
Debt/Equity
0.42x
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 22.4x combined with a PEG ratio of -0.94 provides a growth-adjusted perspective. DIS has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 (22.4x) against the Entertainment median to assess relative pricing, (2) check the PEG ratio (-0.94) 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 -0.94, calculated by dividing the PE ratio (22.4x) by the expected earnings growth rate. Because DIS has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. 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 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.