Walt Disney Intrinsic Value Calculation – Analyst at Morgan Stanley Maintains Positive Outlook on Walt Disney, Rates Stock as Overweight
July 28, 2023
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On July 26th, 2023, Benjamin Swinburne, an analyst at Morgan Stanley, expressed his bullish stance on Walt Disney ($NYSE:DIS) and maintained an Overweight rating. Walt Disney is a leader in entertainment, media, and technology. Its portfolio spans across television networks, movie production, theme parks, and consumer products and services. Swinburne pointed out in his statement that Disney has been well-positioned to benefit from the current global shift towards streaming services and digital content.
In addition, Disney+ continues to grow in popularity with more subscribers than ever before. This has enabled Disney to capitalize on the growth of digital media and also extend its reach to new markets. Swinburne also discussed Disney’s strong financial performance over the past year. Disney’s profitability has been further strengthened by its focus on cost-saving measures which have helped the company weather the storm. As a result, Swinburne’s assessment of the company is positive and he believes that investors should remain bullish on Disney’s future prospects. He recommends that investors buy the stock on any dips and believes that it has potential for further upside in the long term.
Price History
On Wednesday, analysts at Morgan Stanley maintained their positive outlook on Walt Disney and rated the stock as “overweight”. The stock opened at $85.7 and closed at $85.9, marking a 0.3% increase from the prior closing price of 85.6. This is a sign of confidence from Morgan Stanley in Disney’s stock performance and it is likely to be met with optimism by investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Walt Disney. More…
| Total Revenues | Net Income | Net Margin |
| 86.98k | 4.12k | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Walt Disney. More…
| Operations | Investing | Financing |
| 6.71k | -5.53k | -3.76k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Walt Disney. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 204.86k | 94.49k | 54.95 |
Key Ratios Snapshot
Some of the financial key ratios for Walt Disney are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.6% | -7.9% | 9.4% |
| FCF Margin | ROE | ROA |
| 1.6% | 5.3% | 2.5% |
Analysis – Walt Disney Intrinsic Value Calculation
At GoodWhale, we have been analyzing the fundamentals of WALT DISNEY and come to the conclusion that the intrinsic value of their shares is around $162.5. This figure is calculated using our proprietary Valuation Line. Currently, WALT DISNEY stock is trading at $85.9, which means it is undervalued by 47.1%. As a result, we believe that WALT DISNEY stock is an attractive investment opportunity in today’s market. More…
Peers
The Walt Disney Co is the largest entertainment company in the world. It operates in four business segments: media networks, parks and resorts, studio entertainment, and consumer products. The company has a wide array of competitors, including Netflix Inc, Paramount Global, Warner Bros.Discovery Inc, and many others.
– Netflix Inc ($NASDAQ:NFLX)
Netflix is a streaming service for movies and TV shows. It has a market cap of 109B as of 2022 and a Return on Equity of 22.38%. The company was founded in 1997 and is headquartered in Los Gatos, California.
– Paramount Global ($NASDAQ:PARA)
Paramount Global has a market cap of 12.64B as of 2022, a Return on Equity of 18.54%. The company is a leading provider of global insurance and reinsurance solutions. It offers a broad range of products and services to meet the needs of its clients.
– Warner Bros.Discovery Inc ($NASDAQ:WBD)
Discovery, Inc. is a global media and entertainment company that operates a portfolio of cable television networks and produces original content for a variety of platforms. The company operates in over 220 countries and territories and reaches nearly 3 billion people around the world. Discovery’s primary businesses include Discovery Channel, Animal Planet, Science Channel, Investigation Discovery, TLC, OWN: Oprah Winfrey Network, Velocity, Travel Channel, Food Network, Cooking Channel, and HGTV. The company also operates Eurosport, Discovery Kids, Discovery Family, and Discovery Turbo. In addition to its cable networks, Discovery also owns and operates digital media properties, including Discovery Digital Networks, Seeker Network, and TestTube.
Summary
Investment analysts at Morgan Stanley have expressed a positive outlook on Walt Disney, maintaining an Overweight rating on July 26th, 2023. This suggests that the investment is a sound move, with the stock being seen as currently undervalued and likely to bring a good return on investment. Analysts are seeing Disney as a strong performer in the coming years, with the company’s diverse portfolio of entertainment offerings providing a wide range of growth opportunities. Investors should keep a close eye on the performance of the company as it looks to capitalize on these opportunities and expand its presence in the global market.
