Walt Disney Intrinsic Value Calculation – Disney and Reliance Industries Forge Indian Business Partnership
December 27, 2023
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Walt Disney ($NYSE:DIS) is a leading global entertainment company that has been entertaining and inspiring people around the world for over ninety years. Its portfolio includes some of the world’s most beloved entertainment brands, such as Disney, Marvel, Pixar, Star Wars, and National Geographic. The company operates in four business segments: Media Networks, Parks, Experiences and Products, Direct to Consumer and International, and Studio Entertainment. Recently, Reliance Industries and Disney have combined their Indian operations. Reliance Industries is India’s largest private-sector enterprise and operates in various sectors such as energy, textiles, retail, telecommunications, petrochemicals, natural resources, and media.
The partnership between the two companies is expected to benefit the Indian consumer by improving access to Disney’s world-class content. It will also help Reliance Industries expand its media and entertainment business in the country. With the combined strengths of both companies, this new venture is poised to be a force to be reckoned with in India’s media and entertainment industry.
Stock Price
On Tuesday, WALT DISNEY and Reliance Industries announced a new business partnership, which sent WALT DISNEY’s stock opening at $90.8 and closing at $91.0. This represents a slight decrease of 0.1% from their prior closing price of $91.0. Under the terms of the agreement, Reliance Industries will invest in and collaborate with WALT DISNEY in order to tap into India’s rapidly growing media and entertainment market. This will enable WALT DISNEY to expand its presence and visibility in India, while also allowing Reliance Industries to benefit from WALT DISNEY’s expertise and international resources. 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 |
| 88.9k | 2.35k | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Walt Disney. More…
| Operations | Investing | Financing |
| 9.87k | -4.64k | -2.72k |
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 |
| 205.58k | 92.57k | 55.74 |
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 |
| 10.8% | 33.3% | 6.7% |
| FCF Margin | ROE | ROA |
| 5.5% | 3.8% | 1.8% |
Analysis – Walt Disney Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of WALT DISNEY‘s financials. Our proprietary Valuation Line indicates that the fair value of WALT DISNEY share is around $150.8. Interestingly, WALT DISNEY stock is currently trading at $91.0, which is nearly 40% lower than its fair value. This indicates that the WALT DISNEY stock is highly undervalued. More…
Peers
The Walt Disney Co is the largest entertainment company in the world. It operates in four business segments: media networks, parks and resorts, studio entertainment, and consumer products. The company has a wide array of competitors, including Netflix Inc, Paramount Global, Warner Bros.Discovery Inc, and many others.
– Netflix Inc ($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
As one of the world’s largest media and entertainment companies, Walt Disney (DIS) offers a strong investment opportunity for long-term investors. With a portfolio of well-known brands, including Disney, Pixar, Marvel, Lucasfilm, and ESPN, the company generates revenue from a variety of sources, including theme parks, television networks, merchandise, and film studios. The company has also recently announced a merger with Reliance Industries that will bring together their respective Indian businesses. This could further expand Disney’s global presence and generate additional growth opportunities in the coming years.
