DIS The Walt Disney Co

The Walt Disney Company is a global entertainment conglomerate with operations spanning theme parks, film studios, streaming (Disney+), and consumer products. Sector: Communication Services.

The Walt Disney Co (DIS) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 8.13%, WACC is 10.89%, and the economic spread is -2.75%. On balance, the company is currently generating returns below their cost of capital, which may weigh on intrinsic value over time. Supporting metrics show ROE at 11.75% and ROA at 5.28%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

Multiple analysis puts the company at trailing P/E of 14.21, forward P/E of 14.21, PEG of 2.11. Trailing and forward multiples are nearly identical, indicating the market is pricing the company on a relatively static earnings assumption. On a PEG basis, valuation is in the middle ground — fair for the growth on offer, with the return case resting on earnings delivery rather than re-rating. At 0.67, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

On the margin front: gross margin sits at 37.28%, operating margin at 14.40%, and free cash flow margin at 7.38%. At this level, gross margins suggest a more competitive or capital-intensive operating environment across the the company. The operating margin reading is below average, pointing to businesses where scaling costs remain a challenge. Moderate free cash flow margins suggest the company that generate cash but rely on continued revenue growth to sustain reinvestment capacity. The combined margin read is functional rather than exceptional, which can increase sensitivity to cost pressure or slower demand.

On the forward picture: TTM revenue growth of 5.23% reflecting consistent if unspectacular revenue expansion. Forecasted EPS growth of 0.0% over the next year is supportive of the current valuation, suggesting the market is not paying for earnings that won't arrive. Analyst price targets suggest street expectations point to meaningful upside if execution holds on a 12-month view. Revenue growth is grounded in reported results; price targets are forward projections that embed assumptions about multiple expansion, earnings delivery, and macro conditions. The key risk in both directions is whether the company can maintain their operating trajectory as macro and sector conditions evolve. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite picture leans positive, with capital efficiency and growth momentum providing the core of the investment thesis.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.