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The Walt Disney Company (DIS) Stock

The Walt Disney Company Stock Details, Movements and Public Alerts

Walt Disney (DIS): Entertainment Empire's $60 Billion Theme Park Bet While Streaming Turns Profitable

The Walt Disney Company stands at an inflection point as CEO Bob Iger orchestrates one of entertainment's most dramatic transformations. With Disney+ finally profitable after years of losses, Epic Games partnership unlocking new digital frontiers, and $60 billion committed to revolutionary theme park expansions, Disney is rewriting its playbook for the streaming age. The company's treasure trove of intellectual property from Marvel to Star Wars provides competitive advantages that few entertainment companies can match.

  • Streaming Milestone:Disney+ achieved profitability in Q4 2024 with 157M subscribers
  • Park Investment:$60 billion theme park expansion over next decade
  • Gaming Venture:$1.5 billion Epic Games partnership for digital experiences
  • Content Library:Unmatched IP portfolio spanning Marvel, Star Wars, Pixar
  • Revenue Streams:Diversified across streaming, parks, studios, and products

52-Week High

$124.69

-2.36% from high

52-Week Low

$79.76

+52.65% from low

Avg Daily Volume

10,564,553

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

24.92

Near market average

Forward P/E

19.38

Earnings expected to grow

PEG Ratio

0.97

Potentially undervalued

Price to Book

2.11

EV/EBITDA

14.36

EPS (TTM)

$4.91

Price to Sales

2.34

Beta

1.55

More volatile than market

How is DIS valued relative to its earnings and growth?
The Walt Disney Company trades at a P/E ratio of 24.92, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 19.38 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.97 suggests the stock may be undervalued relative to its growth rate.
What is DIS's risk profile compared to the market?
With a beta of 1.55, The Walt Disney Company is significantly more volatile than the market. For every 10% market move, this stock tends to move 16% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 2.11 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

9.48%

Operating Margin

15.10%

Return on Equity

8.89%

Return on Assets

4.48%

Revenue Growth (YoY)

7.00%

Earnings Growth (YoY)

34.60%

How profitable and efficient is DIS's business model?
The Walt Disney Company achieves a profit margin of 9.48%, meaning it retains $9.48 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 15.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 8.89% and ROA at 4.48%, the company achieves moderate returns on invested capital.
What are DIS's recent growth trends?
The Walt Disney Company's revenue grew by 7.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 34.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION industry averages for proper context.

Dividend Information

Dividend Per Share

$1.00

Dividend Yield

0.82%

Ex-Dividend Date

6/24/2025

Dividend Date

7/23/2025

What dividend income can investors expect from DIS?
The Walt Disney Company offers a dividend yield of 0.82%, paying $1.00 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/24/2025.
How reliable is DIS's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - The Walt Disney Company pays $1.00 per share in dividends against earnings of $4.91 per share, resulting in a payout ratio of 20.37%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 7/23/2025.

Company Size & Market

Market Cap

$219.94B

Shares Outstanding

1.80B

Book Value/Share

$57.93

Asset Type

Common Stock

What is DIS's market capitalization and position?
The Walt Disney Company has a market capitalization of $219.94B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 1.80B shares outstanding, the company's ownership is widely distributed. As a major player in the SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION industry, it competes with other firms in this sector.
How does DIS's price compare to its book value?
The Walt Disney Company's book value per share is $57.93, while the current stock price is $121.75, resulting in a price-to-book (P/B) ratio of 2.10. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$125.53

3.10% upside potential

Analyst Recommendations

Strong Buy

6

Buy

17

Hold

7

Sell

1

Strong Sell

0

How reliable are analyst predictions for DIS?
31 analysts cover DIS with 74% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $125.53 implies 3.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on DIS?
Current analyst recommendations:6 Strong Buy, 17 Buy, 7 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 04:47 AM

Technical Indicators

RSI (14-day)

55.15

Neutral

50-Day Moving Average

$113.03

7.71% above MA-50

200-Day Moving Average

$105.25

15.68% above MA-200

MACD Line

2.53

MACD Signal

3.20

MACD Histogram

-0.67

Bearish

What does DIS's RSI value tell investors?
The RSI (Relative Strength Index) for DIS is currently 55.15, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret DIS's MACD and moving average crossovers?
MACD analysis shows the MACD line at 2.53 below the signal line at 3.20, with histogram at -0.67. This bearish crossover indicates downward pressure. The 50-day MA ($113.03) is above the 200-day MA ($105.25), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jul 13, 2025, 12:36 AM

Active Alerts

Alert Condition
Remind me in
Threshold
30days
Created
Jul 6, 2025, 09:56 AM
Alert Condition
Price decreases by
Threshold
10%
Created
Apr 8, 2025, 12:14 PM

Walt Disney (DIS) Stock Analysis 2025: Complete Investment Guide

The Walt Disney Company stands at an inflection point as CEO Bob Iger orchestrates one of entertainment's most dramatic transformations. With Disney+ finally profitable after years of losses, Epic Games partnership unlocking new digital frontiers, and $60 billion committed to revolutionary theme park expansions, Disney is rewriting its playbook for the streaming age. The company's treasure trove of intellectual property from Marvel to Star Wars provides competitive advantages that few entertainment companies can match.

Bob Iger's emergency return to Disney in November 2022 wasn't supposed to happen. The board's desperate call came as the company was hemorrhaging billions in streaming losses while its stock price cratered 40%. 'I knew we had lost our way,' Iger admitted in a recent investor call, acknowledging the creative drift and financial bleeding that threatened Disney's century-old legacy. But what followed wasn't just a turnaround-it was a reinvention. In just 24 months, Iger restructured the company, restored creative excellence, achieved streaming profitability, and announced the boldest expansion plans in Disney history. For investors, the question isn't whether Disney can survive the streaming wars, but whether Iger's vision can transform the House of Mouse into a 21st-century entertainment technology powerhouse.

The numbers tell a remarkable comeback story. Disney+ turned profitable in fiscal Q4 2024-two quarters ahead of guidance-while adding 7 million subscribers globally. The parks segment generated record revenue of $32.5 billion with operating income exceeding $8.9 billion, demonstrating pricing power that would make luxury brands envious. Meanwhile, the studio returned to form with hits like 'Guardians of the Galaxy Vol. 3' and 'Elemental,' proving Disney's creative engine still purrs when properly tuned. Most intriguingly, the $1.5 billion investment in Epic Games signals Disney's ambition to create persistent digital worlds where its characters live beyond screens and parks-a vision that could unlock entirely new revenue streams.

Business Model Evolution: From Linear TV to Digital Experiences

Disney's business model has undergone more change in the past five years than in the previous fifty. The traditional flywheel-create content, monetize through linear TV and theatrical windows, drive merchandise and park visits-is evolving into something far more complex and potentially more lucrative. Streaming now serves as the primary content distribution platform, reaching 157 million Disney+ subscribers directly without intermediaries. But Iger's vision extends beyond replacing cable with streaming; he's building an ecosystem where content, experiences, and commerce intersect seamlessly.

The company operates through three core segments post-reorganization: Entertainment (streaming, linear TV, and film studios), Parks & Experiences, and ESPN (soon to include sports betting). This structure aligns with consumer behavior while maintaining synergies-a Marvel movie drives Disney+ subscriptions, merchandise sales, and park attractions simultaneously. The real innovation lies in Disney's ability to monetize intellectual property across multiple touchpoints throughout a consumer's lifetime, from childhood Disney Princess experiences to adult Star Wars fandom, creating customer lifetime values that span decades.

The Streaming Wars: Profitability Achieved, Growth Ahead

Disney's streaming journey resembles a tech startup more than a traditional media company-massive upfront losses in pursuit of scale, followed by a sharp pivot to profitability. The combined streaming business (Disney+, Hulu, ESPN+) achieved its first profitable quarter in Q4 2024, a milestone many skeptics thought impossible. This wasn't through cost-cutting alone; average revenue per user (ARPU) increased 14% year-over-year as Disney successfully raised prices while introducing an advertising tier that now accounts for 37% of new U.S. signups.

Looking ahead, streaming growth depends on three pillars: content excellence, global expansion, and technological innovation. Disney's content pipeline includes Marvel series that cost $25 million per episode, rivaling theatrical budgets. International expansion focuses on local content production in key markets like India and Latin America. Perhaps most importantly, Disney's streaming technology roadmap includes personalization algorithms, social features, and integration with theme park experiences-transforming Disney+ from a passive viewing platform into an active entertainment hub. The upcoming ESPN flagship streaming service in 2025, potentially including betting integration, represents another massive growth vector.

Theme Parks: The $60 Billion Transformation

If streaming represents Disney's digital future, theme parks embody its physical manifestation. The $60 billion investment announced for the next decade dwarfs any previous expansion, equivalent to building four new theme parks. But this isn't about more rides-it's about reimagining what a theme park can be. Iger envisions parks that blend physical and digital experiences, where guests' Disney+ profiles unlock personalized adventures and where augmented reality transforms static attractions into dynamic narratives.

The financial logic is compelling. Parks generate 36% of Disney's operating income with margins exceeding 27%, far surpassing streaming or linear TV. Moreover, park guests exhibit remarkable price inelasticity-Disney has raised ticket prices 44% over the past decade while attendance remained stable. The expansion plans include new lands based on Disney's most valuable franchises, cruise ship additions, and international park enhancements. Each investment strengthens Disney's competitive moat; no competitor can replicate the combination of beloved IP, operational excellence, and experiential expertise that Disney has cultivated over 70 years.

Content Creation: The Creative Renaissance

Under Iger's renewed leadership, Disney has refocused on quality over quantity-a stark reversal from the volume-driven streaming strategy that diluted the brand. The studio now releases fewer films but with higher budgets and longer development cycles. Recent successes validate this approach: 'Avatar: The Way of Water' grossed $2.3 billion globally, while Pixar's return to theatrical releases with 'Elemental' proved families still value the cinema experience for premium animation.

Marvel Studios exemplifies Disney's recalibrated content strategy. After oversaturating Disney+ with series that confused casual viewers, Marvel now focuses on event programming that drives cultural conversations. The upcoming 'Fantastic Four' and 'Avengers' films represent returns to the theatrical tentpoles that built the MCU's $30 billion franchise value. Similarly, Lucasfilm is moving beyond rapid-fire Star Wars content to carefully crafted projects that expand the universe while respecting canon. This quality-first approach extends to live-action remakes, where Disney now emphasizes creative reimagining over shot-for-shot recreations.

Digital Innovation: The Epic Games Partnership

Disney's $1.5 billion investment in Epic Games represents its boldest bet on the future of entertainment. This isn't merely about creating Fortnite skins featuring Mickey Mouse-it's about building persistent digital worlds where Disney's characters exist continuously, not just during two-hour movies or day-long park visits. Iger describes it as 'the biggest opportunity we've had to expand the Disney universe since acquiring Marvel and Lucasfilm.'

The partnership leverages Epic's Unreal Engine technology and metaverse expertise with Disney's unparalleled character library. Imagine a digital Magic Kingdom where millions gather for virtual parades, or a Star Wars universe where players shape ongoing narratives. These experiences generate revenue through virtual goods, season passes, and premium experiences-high-margin digital products without physical constraints. More importantly, they engage younger audiences who spend more time in Fortnite than watching traditional TV, ensuring Disney's relevance for generations who may never experience linear television.

Financial Performance: Balancing Growth and Profitability

Disney's financial transformation under Iger reflects a shift from growth-at-all-costs to sustainable profitability. Fiscal 2024 revenue reached $91.4 billion with adjusted earnings per share of $5.14, exceeding guidance despite cord-cutting headwinds. Free cash flow generation improved dramatically to $8.2 billion as streaming losses reversed and park margins expanded. The balance sheet remains strong with $14 billion in cash against $47 billion in debt, providing flexibility for both growth investments and shareholder returns.

Capital allocation priorities have clarified under Iger: invest in high-return park expansions, fund premium content creation, develop technology capabilities, and return excess cash to shareholders. Disney reinstated its dividend in 2024 after a COVID suspension, currently yielding 0.8%. The company also authorized a $3 billion share buyback program, signaling confidence in future cash generation. Importantly, Disney maintains investment-grade credit ratings despite significant capital commitments, reflecting rating agencies' confidence in the company's earnings power and asset quality.

Key Risks and Challenges

  • Succession uncertainty as Bob Iger's contract expires in 2026 with no clear heir apparent
  • Cord-cutting acceleration threatening ESPN's $10 billion annual revenue stream
  • Streaming market saturation with intense competition from Netflix, Amazon, and Apple
  • Theme park vulnerability to economic downturns and travel disruptions
  • Political pressures and cultural controversies affecting brand perception
  • Technology disruption from AI, gaming, and new entertainment formats
  • International regulatory challenges, particularly in China where Disney has limited control

Growth Opportunities and Catalysts

  • ESPN betting integration potentially adding $3-5 billion in high-margin revenue
  • Password sharing crackdown could add 20-30 million Disney+ subscribers
  • International park expansion in untapped markets across Asia and Middle East
  • Franchise extensions creating new billion-dollar properties from existing IP
  • Advertising tier growth driving ARPU expansion without subscriber churn
  • Gaming and metaverse revenues from Epic partnership and internal development
  • Theatrical recovery as audiences return for event films post-pandemic

Leadership and Strategic Vision

Bob Iger's leadership represents both Disney's greatest strength and most significant risk. His track record includes transformative acquisitions (Pixar, Marvel, Lucasfilm), operational excellence, and creative renewal. The current transformation-restructuring Disney for the streaming age while preserving its creative soul-may be his greatest challenge yet. Iger's strategic priorities are clear: achieve sustained streaming profitability, revolutionize theme park experiences, restore creative excellence, and position Disney for digital entertainment's next chapter.

The succession question looms large. Iger's previous attempt to hand over leadership ended in failure, necessitating his return. The board is reportedly considering both internal candidates (Josh D'Amaro from Parks, Dana Walden from Entertainment) and external options. Whoever succeeds Iger inherits a company in transition-no longer the traditional media conglomerate of old but not yet the technology-entertainment hybrid of the future. The next CEO must balance Disney's creative heritage with technological innovation while navigating cultural and political minefields that previous generations never faced.

Valuation Analysis and Investment Perspective

At current levels around $115 per share, Disney trades at approximately 22x forward earnings-a discount to streaming pure-plays like Netflix (35x) but a premium to traditional media companies. This valuation reflects Disney's hybrid nature: part growth stock (streaming, parks expansion), part value play (content library, cash generation). On an enterprise value to EBITDA basis, Disney's 12x multiple appears reasonable given its asset quality and growth investments.

Sum-of-the-parts analysis reveals potential undervaluation. The streaming business alone could be worth $150 billion (comparable to Netflix's valuation at similar subscriber counts). Parks might command $200 billion based on comparable REIT multiples for irreplaceable assets. The studio and content library could fetch $50-75 billion. Even accounting for corporate overhead and declining linear networks, Disney's enterprise value of $210 billion appears conservative. Patient investors betting on Iger's transformation could see meaningful upside as streaming margins expand and park investments generate returns.

Investment Recommendation by Investor Type

Conclusion

BUY for growth-oriented investors with 3-5 year horizons. Disney's transformation under Iger positions it uniquely to capture value from streaming maturation, experiential entertainment growth, and digital innovation. While near-term challenges exist around linear TV decline and succession planning, the company's irreplaceable assets and proven execution capability justify patience. The risk-reward favors accumulation at current levels, particularly on any weakness below $110.

Bull Case
$160 (39% upside)
Base Case
$130 (13% upside)
Bear Case
$90 (22% downside)

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