MMarketMath

DIS

StalwartQuality: Medium (67/100)

Walt Disney Company (The) · Communication Services · Movies & Entertainment

$110.61

52w 92.19 – 119.78

20y monthly, adjusted

Mkt cap

$191.0B

P/E

14.9

P/FCF

18.4

FCF yield

5.4%

ROE

11.3%

Shldr yield

2.9%

div 1.0% + bb 1.9%

What today's price assumes

At $191.0B, the market is pricing in 6.6% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 1.8% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $76 · $76 · $94 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 14.7× across 9 years, DIS would trade near $154/share (25th–75th percentile: $123–$330); it trades at 10.6× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+4.5%

Rev 5y

+7.6%

Rev 10y

+7.0%

EPS 5y

EPS 10y

+2.3%

FCF 5y

+22.9%

FCF 10y

+1.8%

Fundamentals

Fiscal 2017–2025, from SEC filings

Revenue

2017: $55.1B
2018: $59.4B
2019: $69.6B
2020: $65.4B
2021: $67.4B
2022: $82.7B
2023: $88.9B
2024: $91.4B
2025: $94.4B
$0$25.0B$50.0B$75.0B
17
19
21
23
25

Net income

2017: $9.0B
2018: $12.6B
2019: $11.1B
2020: −$2.9B
2021: $2.0B
2022: $3.1B
2023: $2.4B
2024: $5.0B
2025: $12.4B
$0$5.0B$10.0B
17
19
21
23
25

Free cash flow

2017: $8.7B
2018: $9.8B
2019: $1.1B
2020: $3.6B
2021: $2.0B
2022: $1.1B
2023: $4.9B
2024: $8.6B
2025: $10.1B
$0$5.0B$10.0B
17
19
21
23
25

Diluted shares (lower is better)

2017: 1.6B
2018: 1.5B
2019: 1.7B
2020: 1.8B
2021: 1.8B
2022: 1.8B
2023: 1.8B
2024: 1.8B
2025: 1.8B
0500.0M1.0B1.5B
17
19
21
23
25

Margins

0%10%20%1719212325
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2017: $11.8B
2018: $6.1B
2019: $2.9B
2020: $1.6B
2021: $0
2022: $0
2023: $0
2024: $4.4B
2025: $5.3B
$0$5.0B$10.0B
17
19
21
23
25

Cash vs long-term debt

$20.0B$40.0B1719212325
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q3'23: $22.3B
Q4'23: $21.2B
Q1'24: $23.5B
Q2'24: $22.1B
Q3'24: $23.2B
Q4'24: $22.6B
Q1'25: $24.7B
Q2'25: $23.6B
Q3'25: $23.6B
Q4'25: $22.5B
Q1'26: $26.0B
Q2'26: $25.2B
Q3'26: $25.2B
$0$10.0B$20.0B
23
24
25
25
26

Net income by quarter

Q3'23: −$460.0M
Q4'23: $264.0M
Q1'24: $1.9B
Q2'24: −$20.0M
Q3'24: $2.6B
Q4'24: $460.0M
Q1'25: $2.6B
Q2'25: $3.3B
Q3'25: $5.3B
Q4'25: $1.3B
Q1'26: $2.4B
Q2'26: $2.2B
Q3'26: $2.6B
$0$2.0B$4.0B
23
24
25
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q3'26$25.2B+6.8%$2.6B−49.9%1.51$4.9B
Q2'26$25.2B+6.5%$2.2B−31.4%1.27$6.9B
Q1'26$26.0B+5.2%$2.4B−6.0%1.34$735.0M
Q4'25 *$22.5B−0.5%$1.3B+185.4%0.72$4.5B
Q3'25$23.6B+2.1%$5.3B+100.8%2.92$3.7B
Q2'25$23.6B+7.0%$3.3B1.81$6.8B
Q1'25$24.7B+4.8%$2.6B+33.6%1.40$3.2B
Q4'24 *$22.6B+6.3%$460.0M+74.2%0.26$5.5B
Q3'24$23.2B+3.7%$2.6B1.43$2.6B
Q2'24$22.1B+1.2%−$20.0M−101.6%-0.01$3.7B
Q1'24$23.5B+0.2%$1.9B+49.4%1.04$2.2B
Q4'23 *$21.2B+5.4%$264.0M+63.0%0.15$4.8B
Q3'23$22.3B+3.8%−$460.0M−132.6%-0.25$2.8B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+4.5%+7.6%
Operating cash flow+44.5%+18.9%
Free cash flow+111.9%+22.9%
EPS (diluted)+58.5%+0.5%
Equity+5.0%+5.6%
LT debt−8.0%−7.8%
Diluted shares−0.3%+0.0%
Stock price+10.9%−8.8%+2.4%+9.3%

$100, 3 years ago

$136vs $176 in SPY

10.9% vs 20.7%/yr

$100, 5 years ago

$63vs $181 in SPY

-8.8% vs 12.6%/yr

$100, 10 years ago

$127vs $412 in SPY

2.4% vs 15.2%/yr

$100, 15 years ago

$380vs $813 in SPY

9.3% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$-0.53

−$11.5B created / $21.7B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

12.5%

OCF ÷ (equity + debt)

OCF / EV yield

8.4%

MC vs 10× OCF

1.02

≤1 = priced under 10× OCF

Debt / FCF

3.5y

SBC / FCF

13.5%

Owner earnings

$8.7B

OCF − capex − SBC

OE yield

4.7%

Share count 5y

+1.7%

per year; negative = buybacks

Capital intensity

43.7%

net PP&E ÷ revenue

Sales efficiency

$0.32

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 39.1% of operating cash flow at an incremental return of 50.2% — an organically fundable growth rate of about 19.6% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

19 of 25 checks pass · 76%. Checks with structurally missing inputs are excluded.

Growth & Consistency

6/6

  • Revenue growth

    7.6% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    · 5y CAGR ≥ 5%

    na
  • FCF growth

    22.9% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    7 of 8 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    9 of 9 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    8 of 9 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    18.9% vs 7.6% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

5/6

  • Net margin

    13.1% · ≥ 8%

    pass
  • Operating margin

    18.6% · ≥ 10%

    pass
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    11.3% · ≥ 12%

    fail
  • Cash ROIC

    12.5% · ≥ 12%

    pass
  • FCF margin

    10.7% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $18.1B vs NI $12.4B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

3/5

  • Debt payable from cash flow

    3.5y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    16% · cash ≥ 50% of LT debt

    fail
  • Leverage

    0.32 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $109.9B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    -10% · interest ≤ 15% of operating income

    pass

Capital Allocation

2/4

  • Share count flat or shrinking

    1.7% · ≤ +0.5%/yr over ~5y

    fail
  • Stock comp restrained

    14% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    53% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    4 of 9 · buybacks in ≥ 5 of last 10 years

    fail

Valuation Discipline

3/4

  • FCF yield

    5.4% · ≥ 3%

    pass
  • Earnings multiple

    14.9 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    6.6% vs 1.8% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    2.9% · dividends + buybacks ≥ 2% of market cap

    pass

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202594,42517,55112,4046.8518,1018,02410,0771,8033,5001,3635,69535,315109,8691,811
202491,36115,6014,9722.7213,9715,4128,5591,3662,9921,3666,00238,970100,6961,831
202388,89812,8632,3541.299,8664,9694,897001,14314,18242,10199,2771,830
202282,72212,1213,1451.726,0024,9431,0590097711,61545,29995,0081,827
202167,4187,7661,9951.095,5663,5781,988060015,95948,54088,5531,828
202065,3888,108-2,864-1.587,6164,0223,5941,587052517,91452,91783,5831,808
201969,60714,84711,0546.645,9844,8761,1082,89507115,41838,12988,8771,666
201859,43415,68912,5988.3614,2954,4659,8302,5153,5773934,15017,08448,7731,507
201755,13714,7758,9805.6912,3433,6238,7202,4459,3683644,0171,578

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.