The Walt Disney Company
DIS
$107.78
+0.43%
The Walt Disney Company operates in three global business 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 media and entertainment industry, Disney leverages its unparalleled intellectual property portfolio to drive synergies across film, television, and consumer experiences. Currently, the investor narrative centers on the company's strategic pivot under new CEO Josh D'Amaro, who is emphasizing the high-margin experiences segment, alongside a robust $9 billion buyback program and strong earnings beats that have recently lifted the stock above $100, though it remains significantly below its all-time high.…
DIS
The Walt Disney Company
$107.78
Related headlines
Investment Opinion: Should I buy DIS Today?
Rating: Buy. Disney is a high-quality franchise with a clear growth strategy, improving profitability, and a compelling valuation. The analyst consensus is 'Strong Buy' with an average target of $127.72, implying ~19.5% upside. The thesis is that Disney's experiences segment and streaming profitability will drive EPS growth of 10-15%, leading to multiple expansion and stock appreciation.
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DIS 12-Month Price Forecast
The AI assessment is bullish with medium confidence. Disney's valuation is attractive relative to its growth, and recent earnings beats and strategic focus on experiences provide positive momentum. However, the stock's underperformance over the past year and macro risks temper confidence. Key factors to watch are streaming profitability, experiences growth, and overall market conditions. If Disney can sustain 10-15% EPS growth and the stock breaks above $110, the bullish case strengthens; if growth disappoints or the market turns, the stance would shift to neutral.
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 $127.72 and implied upside of +18.5% versus the current price.
Average Target
$127.72
0 analysts
Implied Upside
+18.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$88 - $160
Analyst target range
The target price range spans from a low of $88.00 to a high of $160.00, indicating significant uncertainty about Disney's future performance. The high target assumes successful execution of the experiences-led growth strategy and continued streaming profitability, potentially driving multiple expansion. The low target prices in risks such as competitive pressures in streaming, macroeconomic headwinds affecting theme park attendance, or a prolonged recovery in the entertainment segment. Recent institutional actions have been uniformly positive, with firms like Wells Fargo, JP Morgan, and Citigroup reiterating or maintaining overweight/buy ratings, suggesting analysts are not wavering in their bullish stance despite the wide target spread.
Bulls vs Bears: DIS Investment Factors
Disney presents a balanced but slightly bullish case. The bull case is anchored by strong earnings beats, improving streaming profitability, and a strategic shift to high-margin experiences, all supported by a low forward PE and a 'Strong Buy' analyst consensus. The bear case highlights persistent underperformance, modest revenue growth, and macro/competitive risks. The most critical tension is whether Disney can sustain its earnings growth trajectory (10-15% EPS growth) to justify its valuation and close the gap to analyst targets. If growth accelerates, the stock could re-rate higher; if it disappoints, the current recovery could stall. Overall, the evidence slightly favors the bulls given the compelling valuation and positive catalysts, but execution risk remains high.
Bullish
- Strong earnings beat and raised guidance: Disney's Q2 FY2026 (March 28, 2026) EPS of $1.27 beat estimates, and the company raised its full-year EPS growth guidance to 10-15%, driven by streaming profitability and experiences strength. This positive revision supports the stock's recent rebound from $92.19 to $106.85.
- Experiences segment as growth engine: The experiences segment (theme parks, cruises) is delivering high-margin revenue, with admission revenue of $3.09B and resort/vacations at $2.56B in Q2. Under CEO Josh D'Amaro, Disney is prioritizing this segment, which offers pricing power and recurring demand, boosting overall profitability.
- Streaming profitability improving: Disney+ and Hulu are on track to achieve profitability, with streaming losses narrowing significantly. The company's direct-to-consumer segment reported a profit in Q2 FY2026, a key milestone that reduces a major drag on earnings and supports margin expansion.
- Undervalued on forward earnings: With a forward PE of 14.4x and a PEG ratio of 0.11, Disney trades at a significant discount to its expected earnings growth. Analysts project EPS growth of ~14.6% next year, making the stock attractive relative to its growth prospects and historical multiples.
Bearish
- Underperformance vs. market: Disney's stock is down 8.1% over the past year, while the S&P 500 gained 20.4%. Its relative strength is negative across all timeframes (1M: -28.5%, 3M: -1.0%, 6M: -12.5%), indicating persistent investor skepticism and capital rotation away from the stock.
- High debt and interest burden: Disney carries a debt-to-equity ratio of 0.41 and interest expense of $473M in Q2 FY2026. While manageable, the company's leverage limits financial flexibility and increases sensitivity to rising interest rates, which could pressure earnings and valuation.
- Modest revenue growth: Revenue growth has been stable but unimpressive, with Q2 FY2026 revenue up only 6.6% YoY and Q1 FY2026 up 5.2%. This is below the high-growth expectations for a media giant, and the company faces secular challenges in linear TV and streaming competition.
- Valuation premium to peers: Despite a low PE, Disney's EV/EBITDA of 12.8x is higher than some traditional media peers, reflecting a premium that may not be justified if growth remains muted. The stock trades at a 10.8% discount to its 52-week high, but also 15.9% above its low, leaving limited margin of safety.
DIS Technical Analysis
Disney's stock is currently in a recovery phase, trading at $106.85 as of August 14, 2026, which is 89.2% of its 52-week range (low of $92.19, high of $119.78). Over the past year, the stock has declined 8.1%, underperforming the S&P 500's gain of 20.4%, but it has rebounded strongly from its July low. The price sits near the upper end of its recent range, suggesting building momentum, though it remains 10.8% below its 52-week high, indicating room for further upside if resistance is broken.
Beta
1.40
1.40x market volatility
Max Drawdown
-24.8%
Largest decline past year
52-Week Range
$92-$120
Price range past year
Annual Return
-7.3%
Cumulative gain past year
| Period | DIS Return | S&P 500 |
|---|---|---|
| 1m | +12.4% | +2.5% |
| 3m | +4.6% | +2.7% |
| 6m | +2.1% | +11.1% |
| 1y | -7.3% | +20.5% |
| ytd | -3.6% | +12.3% |
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DIS Fundamental Analysis
Disney's revenue trajectory is positive, with the most recent quarter (Q2 FY2026, ended March 28, 2026) reporting $25.17 billion, up 6.6% year-over-year, and showing sequential growth from $22.46 billion in Q4 FY2025. The company's growth is driven by its experiences segment, with admission revenue of $3.09 billion and resort/vacations at $2.56 billion, while subscription fees of $10.58 billion highlight the streaming business's scale. However, revenue growth has been modest, with Q1 FY2026 revenue of $25.98 billion representing a 5.2% increase from the prior year, indicating a stable but not accelerating trajectory.
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 16.5x, while the forward PE is 14.4x, implying the market expects earnings growth of approximately 14.6% over the next year. This forward discount suggests optimism about margin expansion and cost efficiencies, particularly in streaming. The PEG ratio of 0.11 is exceptionally low, indicating that the stock is undervalued relative to its expected earnings growth, though this figure may be distorted by cyclical factors.
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
Financial risks: Disney's debt-to-equity ratio of 0.41 and interest expense of $473M per quarter indicate a moderate leverage burden. While free cash flow is positive at $7.11B TTM, the company's capital-intensive theme park investments and streaming content costs require sustained cash generation. A slowdown in experiences revenue or continued streaming losses could pressure margins and cash flow, potentially leading to dividend cuts or reduced buybacks. The current ratio of 0.71 suggests potential liquidity constraints, though Disney's strong brand and cash flow provide a buffer.