US · NYSE · DIS
Disney (DIS) stock analysis: valuation and financials
Consumer Discretionary · Services-Misc. Amusement & Recreation
$108.49 +0.4% Price as of Oct 12, 2026
Narrow-moat IP and parks compound at ~5% revenue with ROIC 12.0%, but $40.9B net debt and 67.9% goodwill/equity cap upside; base case -6.9% downside means price already reflects execution.
- Market cap
- $187.3B
- P/E
- 21.8x
- EV/Sales
- 2.3x
- FCF yield
- 4.4%
- 52-week range
- $92.42 – $116.65
- Next earnings
- Nov 12, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth47
- Profitability46
- Cash flow77
- Balance sheet40
- Capital allocation70
- Valuation60
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Consumers, subscribers, advertisers, park guests and licensing partners pay Disney for filmed and live content, streaming subscriptions, sports programming, theme park visits and consumer products, with Experiences generating 57.0% of segment operating profit on 38.3% of segment revenue while Entertainment and Sports supply the content flywheel.
Financials by year
| FY2021Oct 2020–Sep 2021 | FY2022Oct 2021–Sep 2022 | FY2023Oct 2022–Sep 2023 | FY2024Oct 2023–Sep 2024 | FY2025Oct 2024–Sep 2025 | |
|---|---|---|---|---|---|
| Revenue | $67.4B | $82.7B | $88.9B | $91.4B | $94.4B |
| Revenue growth | +3.1% | +22.7% | +7.5% | +2.8% | +3.4% |
| Operating margin | 11.5% | 14.7% | 14.5% | 17.1% | 18.6% |
| Net income | $2.0B | $3.1B | $2.4B | $5.0B | $12.4B |
| Free cash flow | $2.0B | $1.1B | $4.9B | $8.6B | $10.1B |
| FCF margin | 2.9% | 1.3% | 5.5% | 9.4% | 10.7% |
Amounts in USD · What is free cash flow?
Margins Operating margin 18.6% in FY2025 vs 17.1% in FY2024, TTM 18.5%; Q3 FY2026 22.0% vs 19.3%. Implied gross margin ~37.7% vs ~35.8% (revenue less cost of services and products). DTC swung to $1.3B operating income and Experiences grew, partly offset by Linear Networks decline.
- Cash flow HealthyOCF $18.1B FY2025 vs net income $12.4B (1.46x); TTM OCF $16.99B vs $8.6B net income (2.0x), cash conversion 2.13x. Earnings are cash-backed, not accrual-driven.
- Debt ManageableNet debt $40.9B; net debt/EBITDA 1.72x on $23.77B EBITDA; total debt $46.0B TTM, up from $42.0B at FY2025 on the Fubo and NFL transactions. Debt/equity 0.42x.
Balance sheet Leverage · Moderate
- Cash & short-term investments
- $5.2B
- Total debt
- $46.0B
- Net debt
- $40.9B
- Net debt / EBITDA
- 1.7x
- Interest coverage
- 10.0x
- Current ratio
- 0.7x
As of Jun 27, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateOperating execution improved: FY2025 ROIC 12.0% versus 5.2% in FY2020, operating margin 18.6% (up 1.5pts) and free cash flow $10.1B with a 10.7% margin.
- Credibility HighSegment operating income beat guidance in each of the last two reports: Q2 FY2026 $4.6B and Q3 FY2026 $5.6B (+21% y/y), both called modestly above prior guidance.
Valuation range
Implied value per share · Price when researched: $108.49
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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