Walt Disney Company (DIS)
Communication Services · $204B market cap · SEC CIK 0001744489
ahead of 35% of the S&P 500 · #10 of 19 in Communication Services
Next reports on Nov 17, 2026, before the open, with analysts expecting $1.69 in earnings per share.
52-week range $92.19 to $120.80. 1% below its 52-week high and 29% above its low.
The case for DIS
- Pays a modest 1.1% dividend.
- Within 1% of its 52-week high: the trend is up.
The case against
- Earnings per share down 24.0%.
- Priced at 23.7× earnings while earnings per share are shrinking (−24.0%).
- Return on equity of only 8%.
- Current liabilities exceed current assets (ratio 0.71).
- Long-term debt of $35.3B against $5.7B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 45 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 40 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 42 |
| Momentumhow the price has behaved lately | 77 |
| Stabilityhow violently it moves, what it owes and what it pays you | 60 |
- Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +4.6% |
|---|---|
| Over 5 years | +7.6% a year |
| FY2025 revenue | $94.4B (+3%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $10.1B |
|---|---|
| Of revenue | 11% |
| Of profit | 81% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 38% |
|---|---|
| Operating margin | 14% |
| Net margin, FY24 → FY25 → now | 5.4% → 13.1% → 8.7% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $5.7B |
|---|---|
| Long-term debt | $35.3B |
| Net debt | $29.6B |
| Years to repay | 2.0 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 23.7× |
|---|---|
| Fair P/E for its growth | 20× |
| P/FCF | 20.2× |
| Forward P/E | 14.8× |
| EV / EBITDA | 12.8× |
At 23.7× earnings it trades above the 20× that 7% a year of growth plus a 1.1% dividend would justify. At 20.2× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from Walt Disney Company's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $94.4B | $91.4B | $88.9B | $82.7B | $67.4B |
| Change on the year | +3% | +3% | +7% | +23% | — |
| Free cash flow | |||||
| Free cash flow | $10.1B | $8.6B | $4.9B | $1.1B | $2.0B |
| Of revenue | 11% | 9% | 6% | 1% | 3% |
| Profit margins | |||||
| Operating margin | 18.6% | 17.1% | 14.5% | 14.7% | 11.5% |
| Net margin | 13.1% | 5.4% | 2.6% | 3.8% | 3.0% |
| Debt vs. cash | |||||
| Cash | $5.7B | $6.0B | $14.2B | $11.6B | $16.0B |
| Long-term debt | $35.3B | $39.0B | $42.1B | $45.3B | $48.5B |
| Net cash (debt) | −$29.6B | −$33.0B | −$27.9B | −$33.7B | −$32.6B |
What Walt Disney Company says it does
The Walt Disney Company, together with the subsidiaries through which businesses are conducted (the Company), is a diversified worldwide entertainment company with operations in three segments: Entertainment, Sports and Experiences. The terms “Company”, “we”, “our” and “us” are used in this report to refer collectively to the parent company and the subsidiaries through which businesses are conducted. ENTERTAINMENT The Entertainment segment generally encompasses the Company’s non-sports focused global film and episodic content production and distribution activities. The lines of business within Entertainment along with their significant business activities include the following: • Linear Networks ◦ Domestic: ABC Television Network (ABC Network); Disney, Freeform, FX and National Geographic (owned 73% by the Company) branded television channels; and eight owned ABC television stations ◦ International: Disney, FX and National Geographic…