The Walt Disney Company (DIS) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Communication Services · Entertainment
Is The Walt Disney Company a safe investment right now?
The Walt Disney Company's Altman Z-Score of 2.42 places it in the gray zone. Our fair value estimate is $83.97 (Overvalued). Moat rating: 2.9/5 stars.
Could The Walt Disney Company go bankrupt? Altman Z-Score analysis
Z-Score of 2.42 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives DIS's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0501 | 1.2 | -0.06 |
| B · Retained Earnings / Total Assets | RE / TA | 0.3059 | 1.4 | 0.43 |
| C · EBIT / Total Assets | EBIT / TA | 0.0699 | 3.3 | 0.23 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.2422 | 0.6 | 1.35 |
| E · Revenue / Total Assets | Rev / TA | 0.4781 | 1.0 | 0.48 |
How has DIS's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 1.99 | Gray |
| 2023 | 2.07 | Gray |
| 2024 | 2.15 | Gray |
| 2025 | 2.42 | Gray |
Source: Calculated from DIS's latest 10-K filing on SEC EDGAR.
What is The Walt Disney Company actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $6.41 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $6.85 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $6.64 | 29 analysts consensus |
| Trailing P/E | 15.4x | Current market pricing |
| Fair P/E (β discount) | 13.1x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Declining | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $128.25 (29 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does The Walt Disney Company have a durable competitive advantage?
Moat rating: 2.9/5.
What makes up DIS's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is DIS's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 4.8% | — |
| 2023 | 4.6% | Stable |
| 2024 | 6.6% | Rising |
| 2025 | 9.1% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is The Walt Disney Company's dividend safe?
Can The Walt Disney Company afford its dividend?
Payout ratio is 18.4%. FCF covers the dividend 0.0x. 49 consecutive years of payments.
The Walt Disney Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $94.4B | $91.4B | $82.7B | Rising |
| Net Income | $12.4B | $5.0B | $3.1B | Rising |
| Free Cash Flow | $10.1B | $8.6B | $1.1B | Rising |
| Gross Margin | 37.8% | 35.8% | 34.2% | Rising |
Recent events that affect our DIS analysis
DIS earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.49. Revenue estimate: $24.83B. Our current Fair Value: $83.97 — a significant beat or miss could shift this estimate.
DIS analyst consensus: 87% bullish (27 of 31 analysts)
7 Strong Buy, 20 Buy, 3 Hold, 1 Sell, 0 Strong Sell. Consensus target: $128.25 (22.4% upside). Compare with our independent Fair Value: $83.97.
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS beat EPS estimates by 3.4%
Reported EPS: $1.63 vs estimate $1.58. Earnings strength supports our Fair Value of $83.97 (19.9% below current price).
DIS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS paid $0.7500/share dividend
Dividend Safety Grade: B. Payout ratio: 18.4%.
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS beat EPS estimates by 8.4%
Reported EPS: $1.11 vs estimate $1.02. Earnings strength supports our Fair Value of $83.97 (19.9% below current price).
DIS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS beat EPS estimates by 11.3%
Reported EPS: $1.61 vs estimate $1.45. Earnings strength supports our Fair Value of $83.97 (19.9% below current price).
DIS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS paid $0.5000/share dividend
Dividend Safety Grade: B. Payout ratio: 18.4%.
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS beat EPS estimates by 19.8%
Reported EPS: $1.45 vs estimate $1.21. Earnings strength supports our Fair Value of $83.97 (19.9% below current price).
DIS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS beat EPS estimates by 22.9%
Reported EPS: $1.76 vs estimate $1.43. Earnings strength supports our Fair Value of $83.97 (19.9% below current price).
DIS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
DIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about The Walt Disney Company
What is The Walt Disney Company stock price today?
The Walt Disney Company (DIS) stock price is $104.82 as of the latest market close, traded on the NYSE exchange.
What does The Walt Disney Company do?
The Walt Disney Company operates as an entertainment company in Americas, Europe, and the Asia Pacific. It operates in three segments: Entertainment, Sports, and Experiences. It produces and distributes film and television content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.
What is The Walt Disney Company market cap?
The Walt Disney Company has a market capitalization of $185.89B, classifying it as a large-cap stock in the Communication Services sector.
What sector and industry is DIS in?
The Walt Disney Company operates in the Communication Services sector, specifically within the Entertainment industry. It trades on the NYSE under the ticker symbol DIS.
Is DIS stock overvalued or undervalued?
Based on our valuation model, The Walt Disney Company trades 24.8% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $83.97
- Current Price: $104.82
- Valuation Zone: Overvalued
What is DIS stock forecast and analyst target price?
Based on 29 Wall Street analysts, the consensus price target for The Walt Disney Company is $128.25, implying upside of 22.4% from the current price.
- Analyst High Target: $160.00
- Analyst Low Target: $77.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is The Walt Disney Company revenue and earnings growing?
Here are the analyst consensus growth estimates for The Walt Disney Company:
- Revenue growth (current year est.): 7.0%
- EPS growth (current year est.): 11.9%
- Revenue growth (next year est.): 4.2%
- EPS growth (next year est.): 10.5%
What are The Walt Disney Company's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $94.4B | Rising |
| Net Income | $12.4B | Rising |
| Free Cash Flow | $10.1B | Rising |
| Gross Margin | 37.8% | Rising |
What is DIS's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 15.4x
- Forward P/E (next 12 months est.): 14.3x
- FairValueLabs Fair P/E: 13.1x
How volatile is DIS stock?
The Walt Disney Company has a beta of 1.44, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does The Walt Disney Company have?
The Walt Disney Company's balance sheet shows:
- Total Cash: $5.68B
- Total Debt: $46.64B
- Net Cash Position: $-40.96B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is The Walt Disney Company's free cash flow?
The Walt Disney Company generated $3.17B in trailing twelve-month free cash flow (from $15.63B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does The Walt Disney Company pay a dividend, and is it safe?
Yes, The Walt Disney Company pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.4%
- Payout Ratio: 18.4%
- Consecutive Years Paid: 49
- 5-Year Dividend Growth: -5.1%
- FairValueLabs Safety Grade: B
Is The Walt Disney Company at risk of going bankrupt?
The Walt Disney Company's Altman Z-Score is 2.42, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does The Walt Disney Company have a durable competitive advantage?
The Walt Disney Company scores 2.9/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is DIS's return on equity (ROE)?
The Walt Disney Company's return on equity is 12.0%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy DIS stock?
DIS shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol DIS
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is DIS a value stock or speculative?
FairValueLabs classifies The Walt Disney Company as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of The Walt Disney Company?
The current CEO of The Walt Disney Company is Mr. Josh D'Amaro.
What is DIS's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $6.79
- Forward EPS (next 12 months est.): $7.33
- Analyst consensus EPS (this year): $6.64
- Analyst consensus EPS (next year): $7.33
Other Communication Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
DIS analysis methodology: How we calculate fair value, Z-Scores, and moat ratings