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Walt Disney Stock Share

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Disney (DIS) Shares Are Significantly Undervalued
Consider Disney (DIS) Shares Following Recent Upgrades From Analysts
Is Disney (DIS) A Good Stock Buy Despite A Recent Rally?
The Walt Disney Company (NYSE:DIS) shares soared significantly in the last couple of months, buoyed by the future projects and strong financial performance in FY2016. Although DIS stock soared nearly 18% in the last three months to the highest level in the thirteen months, the company’s future fundamentals and lower valuations suggest further upside in the coming days.
In addition, several analysts, including Morgan Stanley and Piper Jaffray, increased their price targets for Walt Disney’s stock price. Morgan Stanley increased DIS shares to Overweight with a price target …show more content…

Jaffray said "Based on our analysis of the upcoming projects across Parks and Resorts, the future film slate at the Disney Studio and its impact on Consumer Products, we are raising our average annual growth expectations by 100bps over the next four years".
In spite of a recent share price rally, DIS stock also appears undervalued considering its lower valuation compared to the industry average. Its stock is trading around 19 times to earnings and 4 times to book ratio, when the industry average is hovering around 21 and 4.4 times, respectively.
Fiscal 2016 was its sixth successive year of record results, supported by the opening of Shanghai Disney Resort, its Studio’s record-breaking $7.5 billion in total box office and the phenomenally successful return of Star Wars.
The company also looks in strong position to extend its strong performances in FY2017, due to its continued investments in its brands and franchises, technological capabilities, and global presence.
On the other hand, Disney’s strategy of strengthening its balance sheet and improving its cash conversion ratio will allow it to fund growth projects. Its debt to equity ratio stands around 0.4, when the industry average is around 1. Last year, the company generated almost $8.4 billion in free cash flows, compared with dividend payments of $2.3 billion. Overall, DIS has several positive catalysts that are likely to support its share price

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