Walt Disney Intrinsic Value Calculation – J.P. Morgan Reinstates Overweight Rating on Walt Disney, Calling it Their “Favorite Name” in the Media Landscape.
February 20, 2023
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J.P. Morgan has recently given Walt Disney ($NYSE:DIS) an Overweight rating, describing it as their “favorite name” in the media sector. This is due to the company’s impressive performance and resilience over the years. Walt Disney is a global media and entertainment company, offering a wide variety of products and services across several industries. This includes cable networks, broadcast television, theme parks, film studios, consumer products, interactive media, and cruise lines. With such a diverse portfolio of offerings, Walt Disney has been able to consistently remain one of the most profitable and popular businesses in the world.
Since then, it has grown to become one of the most recognizable names in the entertainment industry. Some of its most iconic franchises include Mickey Mouse, Avengers, Star Wars, and Disney Princesses. The company also owns ABC Television Network and ESPN, further solidifying its presence in the media sector. The rating expresses optimism that the company will continue to be a leader in the media landscape going forward.
Price History
This is due to the fact that right now, media exposure of the company is mostly positive. The stock opened at $108.1 and closed at $107.7, down by 0.4% from last closing price of 108.1. Walt Disney has been a global leader in media and entertainment for decades, with a portfolio that includes broadcast and cable television networks, film studios, live-action and animated feature films, music and merchandise. This was a great strategic move as the industry for streaming entertainment continues to grow in popularity, and it has allowed Disney to expand their business model. Disney recently reported record quarterly revenue from its Parks and Resorts segment, driven by the success of their theme parks and hotels.
They also reported strong results from their Consumer Products and Studio Entertainment segments, with box office sales boosted by the release of Frozen 2 and The Lion King remake. Investors should take advantage of this opportunity as J.P. Morgans ratings suggest that Disney is the “favorite name” in the media landscape right now. 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 |
| 84.42k | 3.32k | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Walt Disney. More…
| Operations | Investing | Financing |
| 5.24k | -5.31k | -5.49k |
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 |
| 202.12k | 93.25k | 52.63 |
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 |
| 4.0% | -16.5% | 8.3% |
| FCF Margin | ROE | ROA |
| 0.1% | 4.6% | 2.2% |
Analysis – Walt Disney Intrinsic Value Calculation
GoodWhale has conducted an analysis of WALT DISNEY‘s financials. By combining traditional financial analysis with our proprietary Valuation Line, we have determined that the fair value of WALT DISNEY shares is around $163.7. At the moment, the company’s stock is trading at $107.7, which represents a 34.2% undervaluation. This implies that investors could potentially benefit from buying and holding shares in the company. Given the current stock price and the potential upside, we believe that WALT DISNEY is an attractive investment opportunity. The company has a strong balance sheet, healthy cash flow and a well-diversified portfolio of businesses. Furthermore, its experienced management team has proven to be able to take advantage of growth opportunities and capitalise on emerging trends. Overall, we believe that WALT DISNEY is a well-positioned company that offers investors an attractive entry point and upside potential in the long run. Before making an investment, however, investors should always do their own due diligence and consider any risks involved. More…
Peers
The Walt Disney Co is the largest entertainment company in the world. It operates in four business segments: media networks, parks and resorts, studio entertainment, and consumer products. The company has a wide array of competitors, including Netflix Inc, Paramount Global, Warner Bros.Discovery Inc, and many others.
– Netflix Inc ($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
Investors may find Walt Disney to be an attractive investment opportunity according to JP Morgan, who recently reinstated its overweight rating on the company. The large media conglomerate is well-positioned for continued success due to its diversified offering of entertainment services and products, strong brand recognition, and global presence. Recent reviews of the company are largely positive, which could be an indicator of a good outlook for investors.
The company has also been able to weather economic turmoil, proving its stability and resilience. For those looking to add Disney shares to their portfolio, now may be a good time to consider it.
