The Walt Disney Company
DIS
$106.22
-1.24%
The Walt Disney Company operates through three global segments: entertainment, sports, and experiences, encompassing iconic franchises, streaming services like Disney+ and Hulu, the ESPN network, and theme parks and cruises. As a dominant player in the entertainment industry, Disney leverages its unparalleled intellectual property portfolio to drive synergies across film, television, and consumer experiences. The current investor narrative centers on the company's strategic pivot under new CEO Josh D'Amaro, emphasizing the high-margin experiences segment, while navigating the ongoing transformation of its streaming business toward profitability. Recent earnings beats and a $9 billion buyback have bolstered sentiment, yet the stock remains significantly below its all-time high, reflecting lingering concerns about linear TV declines and the competitive streaming landscape.…
DIS
The Walt Disney Company
$106.22
Related headlines
Investment Opinion: Should I buy DIS Today?
Based on the data, I rate DIS a Buy, supported by a Strong Buy consensus and an average target of $127.84, implying 18.3% upside. The thesis is that Disney's experiences-led growth and streaming profitability improvements will drive earnings growth, justifying a re-rating toward the industry average PE.
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DIS 12-Month Price Forecast
The AI model assesses Disney as bullish, given its discounted valuation, accelerating revenue, and strong analyst support. The medium confidence reflects uncertainties around linear TV declines and macro risks. The stance would upgrade to high confidence if streaming turns profitable and revenue growth exceeds 8%, while a downgrade to neutral would occur if the stock breaks below $95 or if revenue growth falls below 4%.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on The Walt Disney Company's 12-month outlook, with a consensus price target around $127.84 and implied upside of +20.4% versus the current price.
Average Target
$127.84
0 analysts
Implied Upside
+20.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$88 - $160
Analyst target range
Disney has coverage from 32 analysts, with a consensus recommendation of 'Strong Buy' (mean rating of 1.42 on a 1-5 scale, where 1 is Strong Buy). The average price target is $127.84, implying an upside of 18.3% from the current price of $108.10. The distribution is heavily bullish, with no sell ratings and a majority of buy/overweight ratings, reflecting confidence in the company's strategic direction. The target price range spans from a low of $88.00 to a high of $160.00, indicating a wide dispersion of expectations. The high target of $160 assumes successful execution of the experiences-led growth strategy and continued streaming profitability, potentially driving multiple expansion. The low target of $88 suggests risks such as prolonged linear TV declines or a recession impacting theme park attendance. Recent institutional ratings have been consistently positive, with firms like Wells Fargo, JP Morgan, and Citigroup reiterating Overweight/Buy ratings, and no downgrades in the past three months, signaling strong conviction among analysts.
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Bulls vs Bears: DIS Investment Factors
Disney presents a compelling risk/reward with strong analyst support, accelerating revenue, and a discounted valuation. The bull case is anchored by the experiences segment's high margins and streaming profitability improvements, while the bear case centers on linear TV declines and liquidity concerns. Currently, the bull evidence is stronger, given the 18.3% upside to the average target and a 25% PE discount to peers. The key tension is whether the experiences-led growth can offset linear TV erosion—if it does, the stock could re-rate higher; if not, the low target of $88 becomes more plausible.
Bullish
- Strong Buy consensus with 18.3% upside: 32 analysts rate DIS a Strong Buy (mean 1.42), with an average target of $127.84, implying 18.3% upside from $108.10. No sell ratings and recent upgrades from major banks signal high conviction in the strategic pivot.
- Revenue growth accelerating to 6.55% YoY: Q2 FY2026 revenue hit $25.168B, up 6.55% YoY, accelerating from Q1's 5.2% growth. This marks the third consecutive quarter of sequential improvement, driven by experiences and streaming gains.
- Valuation at 25% discount to industry: Trailing PE of 16.49x and forward PE of 14.52x compare favorably to the industry average of 22x. The stock trades near the low end of its historical PE range (10.47x–96.01x), offering a margin of safety.
- Solid profitability with expanding margins: Operating margin improved to 15.05% in Q2 FY2026 from 14.84% a year ago, while net income rose to $2.247B (8.93% net margin). ROE stands at 11.29%, reflecting efficient capital use.
Bearish
- Stock down 8.1% over past year: Despite recent recovery, DIS is 8.1% below its year-ago level and 49% below its all-time high. Underperformance vs. S&P 500 (relative strength -26.7% over 1 year) reflects persistent skepticism.
- Current ratio below 1 signals liquidity risk: Current ratio of 0.71 indicates potential short-term liquidity pressure, as current liabilities exceed current assets. This could constrain flexibility if cash flows weaken.
- Linear TV decline remains a drag: The entertainment segment faces structural declines in cable networks, with revenue concentration in legacy TV. This headwind could offset gains in streaming and experiences, pressuring margins.
- High beta amplifies market volatility: Beta of 1.395 means DIS is 39.5% more volatile than the market. In a downturn, the stock could fall more than peers, as seen in its -24.21% max drawdown over the past year.
DIS Technical Analysis
Disney's stock is currently in a recovery phase, having rebounded from a 52-week low of $92.19 to a current price of $108.10, though it remains 8.1% below its level from a year ago. The stock is trading at approximately 90% of its 52-week range (between $92.19 and $119.78), indicating it has recovered from the lows but still faces resistance near the highs. This positioning suggests a mix of value opportunity and lingering caution, as the stock has not yet reclaimed its previous highs, but the upward trajectory from the lows is encouraging.
Beta
1.40
1.40x market volatility
Max Drawdown
-23.2%
Largest decline past year
52-Week Range
$92-$120
Price range past year
Annual Return
-10.3%
Cumulative gain past year
| Period | DIS Return | S&P 500 |
|---|---|---|
| 1m | +10.4% | +2.0% |
| 3m | +6.9% | +1.0% |
| 6m | +3.7% | +11.8% |
| 1y | -10.3% | +18.1% |
| ytd | -5.0% | +11.7% |
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DIS Fundamental Analysis
Disney's revenue trajectory shows a return to growth, with the most recent quarter (Q2 FY2026, ended March 28, 2026) reporting $25.168 billion, up 6.55% year-over-year, and accelerating from the prior quarter's $25.981 billion (Q1 FY2026) which was up 5.2% from the year-ago quarter. The multi-quarter trend indicates a steady recovery, with revenue growing from $22.464 billion in Q4 FY2025 to $25.168 billion in Q2 FY2026, driven by strength in experiences and streaming. The company's profitability is solid, with net income of $2.247 billion in the latest quarter, a net margin of 8.93%, and a gross margin of 36.82%, which is stable compared to the prior year's 37.30% in Q2 FY2025. Operating margin improved to 15.05% from 14.84% in the year-ago quarter, indicating efficient cost management. Disney's balance sheet remains healthy, with a debt-to-equity ratio of 0.41, a current ratio of 0.71 (below 1, indicating potential liquidity pressure), and free cash flow of $7.11 billion on a trailing twelve-month basis, which supports its $9 billion buyback and dividend. The company generated $6.914 billion in operating cash flow in the latest quarter, covering its capital expenditures of $1.973 billion, and its ROE stands at 11.29%, reflecting solid shareholder returns.
Quarterly Revenue
$25.2B
2026-03
Revenue YoY Growth
+6.6%
YoY Comparison
Gross Margin
36.8%
Latest Quarter
Free Cash Flow
$7.1B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is DIS Overvalued?
Given Disney's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 16.49x, while the forward PE is 14.52x, indicating the market expects earnings growth of about 13.6% (implied by the lower forward multiple). This gap suggests optimism about future profitability, likely driven by streaming improvements and experiences growth. Compared to the industry average PE of 22x (based on available data), Disney trades at a 25% discount, which is notable given its strong brand and diversified revenue streams. This discount may reflect concerns about linear TV declines and competitive pressures in streaming. Historically, Disney's PE has ranged from 10.47x (Q3 FY2025) to 96.01x (Q4 FY2024), with the current 16.49x near the lower end of its historical band, suggesting the stock is undervalued relative to its own history, potentially offering a margin of safety if the company can sustain its growth trajectory.
PE
16.5x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 10x~145x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.8x
Enterprise Value Multiple
Investment Risk Disclosure
Financially, Disney's debt-to-equity ratio of 0.41 is manageable, but the current ratio of 0.71 indicates potential liquidity strain, as current liabilities exceed current assets. The company's reliance on continued revenue growth to justify its valuation is a risk; if growth decelerates below the current 6.55% YoY, the forward PE of 14.52x could compress. Additionally, the $9B buyback and dividend are supported by $7.11B TTM free cash flow, but any cash flow shortfall could force cuts, impacting shareholder returns.