Should You Buy Walt Disney Co (DIS) Stock Monday?

Walt Disney Co (DIS) receives a strong valuation ranking of 79 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. DIS has a better value than 79% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

DIS gets a 79 Valuation Rank today. Find out what this means to you and get the rest of the rankings on DIS!

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Metrics Analysis

DIS has a trailing twelve month Price to Earnings (PE) ratio of 57.8 which places it above the histroical average of roughly 15. DIS is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. DIS's trailing-12-month earnings per share (EPS) of 1.72 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. DIS has a 12 month forward PE to Growth (PEG) ratio of 1.36. Markets are overvaluing DIS in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 1.72000002's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

All together these valuation metrics paint a pretty poor picture for DIS at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for DIS are worse than the average of the market resulting in a valuation score of 79. Click Here to get the full Report on Walt Disney Co (DIS) stock.