Walt Disney Co (DIS) Stock: How Does it Score on Valuation Metrics?

Walt Disney Co (DIS) receives a strong valuation score of 73 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. DIS holds a better value than 73% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

DIS gets a 73 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 280.9. The historical average of roughly 15 shows a poor value for DIS stock as investors are paying higher share prices relative to the company's earnings. DIS's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.61 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. DIS currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.57. The market is currently overvaluing DIS in relation to its projected growth due to the PEG ratio being above the fair market value of 1. DIS's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

DIS's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. DIS's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Walt Disney Co (DIS) stock.