Walt Disney Co. (DIS) | Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Walt Disney Co., current price multiples
| Walt Disney Co. | Consumer Services | |
|---|---|---|
| Selected Financial Data | ||
| Current share price (P) | $ 65.57 | |
| No. shares of common stock outstanding | 1,772,122,139 | |
| Growth rate (g) | 10.60% | |
| Earnings per share (EPS) | $ 3.21 | |
| Next year expected EPS | $ 3.55 | |
| Operating profit per share | $ 4.94 | |
| Sales per share | $ 23.86 | |
| Book value per share (BVPS) | $ 22.44 | |
| Ratios (Price Multiples) | ||
| Price to earnings (P/E) | 20.45 | 19.26 |
| Price to next year expected earnings | 18.49 | 17.52 |
| Price-earnings-growth (PEG) | 1.93 | 1.94 |
| Price to operating profit (P/OP) | 13.26 | 11.37 |
| Price to sales (P/S) | 2.75 | 0.94 |
| Price to book value (P/BV) | 2.92 | 3.36 |
If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
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Historical Valuation Ratios (Summary)
Walt Disney Co., historical price multiples
| Sep 29, 2012 | Oct 1, 2011 | Oct 2, 2010 | Oct 3, 2009 | Sep 27, 2008 | Sep 29, 2007 | ||
|---|---|---|---|---|---|---|---|
| Price to earnings (P/E) | 15.18 | 12.48 | 17.62 | 17.36 | 7.83 | 12.79 | |
| Price to operating profit (P/OP) | 9.84 | 7.77 | 10.81 | 11.03 | 4.68 | 8.84 | |
| Price to sales (P/S) | 2.04 | 1.47 | 1.83 | 1.59 | 0.92 | 1.69 | |
| Price to book value (P/BV) | 2.17 | 1.61 | 1.86 | 1.70 | 1.07 | 1.95 |
| Ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Walt Disney Co.'s P/E ratio declined from 2010 to 2011 but then increased from 2011 to 2012 not reaching 2010 level. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Walt Disney Co.'s P/OP ratio declined from 2010 to 2011 but then increased from 2011 to 2012 not reaching 2010 level. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Walt Disney Co.'s P/S ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. | Walt Disney Co.'s P/BV ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level. |
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Price to Earnings (P/E)
| Sep 29, 2012 | Oct 1, 2011 | Oct 2, 2010 | Oct 3, 2009 | Sep 27, 2008 | Sep 29, 2007 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,772,122,139 | 1,796,513,187 | 1,893,583,594 | 1,865,010,858 | 1,851,027,161 | 1,903,484,711 | |
| Selected Financial Data (USD $) | |||||||
| Net income attributable to The Walt Disney Company (Disney) (in millions) | 5,682 | 4,807 | 3,963 | 3,307 | 4,427 | 4,687 | |
| Earnings per share (EPS) | 3.21 | 2.68 | 2.09 | 1.77 | 2.39 | 2.46 | |
| Share price1, 2 | 48.68 | 33.40 | 36.87 | 30.79 | 18.73 | 31.50 | |
| P/E Ratio, Comparison to Industry | |||||||
| Walt Disney Co. | 15.18 | 12.48 | 17.62 | 17.36 | 7.83 | 12.79 | |
| Industry, Consumer Services | 15.58 | 13.92 | 15.97 | 15.05 | 21.73 | – | |
2 Close price on the filing date of Walt Disney Co.'s Annual Report.
| Ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Walt Disney Co.'s P/E ratio declined from 2010 to 2011 but then increased from 2011 to 2012 not reaching 2010 level. |
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Price to Operating Profit (P/OP)
| Sep 29, 2012 | Oct 1, 2011 | Oct 2, 2010 | Oct 3, 2009 | Sep 27, 2008 | Sep 29, 2007 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,772,122,139 | 1,796,513,187 | 1,893,583,594 | 1,865,010,858 | 1,851,027,161 | 1,903,484,711 | |
| Selected Financial Data (USD $) | |||||||
| Operating income (in millions) | 8,763 | 7,726 | 6,456 | 5,205 | 7,404 | 6,781 | |
| Operating profit per share | 4.94 | 4.30 | 3.41 | 2.79 | 4.00 | 3.56 | |
| Share price1, 2 | 48.68 | 33.40 | 36.87 | 30.79 | 18.73 | 31.50 | |
| P/OP Ratio, Comparison to Industry | |||||||
| Walt Disney Co. | 9.84 | 7.77 | 10.81 | 11.03 | 4.68 | 8.84 | |
| Industry, Consumer Services | 9.20 | 8.44 | 9.36 | 8.85 | 11.04 | – | |
2 Close price on the filing date of Walt Disney Co.'s Annual Report.
| Ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Walt Disney Co.'s P/OP ratio declined from 2010 to 2011 but then increased from 2011 to 2012 not reaching 2010 level. |
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Price to Sales (P/S)
| Sep 29, 2012 | Oct 1, 2011 | Oct 2, 2010 | Oct 3, 2009 | Sep 27, 2008 | Sep 29, 2007 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,772,122,139 | 1,796,513,187 | 1,893,583,594 | 1,865,010,858 | 1,851,027,161 | 1,903,484,711 | |
| Selected Financial Data (USD $) | |||||||
| Revenues (in millions) | 42,278 | 40,893 | 38,063 | 36,149 | 37,843 | 35,510 | |
| Sales per share | 23.86 | 22.76 | 20.10 | 19.38 | 20.44 | 18.66 | |
| Share price1, 2 | 48.68 | 33.40 | 36.87 | 30.79 | 18.73 | 31.50 | |
| P/S Ratio, Comparison to Industry | |||||||
| Walt Disney Co. | 2.04 | 1.47 | 1.83 | 1.59 | 0.92 | 1.69 | |
| Industry, Consumer Services | 0.76 | 0.71 | 0.74 | 0.66 | 0.64 | – | |
2 Close price on the filing date of Walt Disney Co.'s Annual Report.
| Ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Walt Disney Co.'s P/S ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level. |
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Price to Book Value (P/BV)
| Sep 29, 2012 | Oct 1, 2011 | Oct 2, 2010 | Oct 3, 2009 | Sep 27, 2008 | Sep 29, 2007 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,772,122,139 | 1,796,513,187 | 1,893,583,594 | 1,865,010,858 | 1,851,027,161 | 1,903,484,711 | |
| Selected Financial Data (USD $) | |||||||
| Total Disney Shareholder's equity (in millions) | 39,759 | 37,385 | 37,519 | 33,734 | 32,323 | 30,753 | |
| Book value per share (BVPS) | 22.44 | 20.81 | 19.81 | 18.09 | 17.46 | 16.16 | |
| Share price1, 2 | 48.68 | 33.40 | 36.87 | 30.79 | 18.73 | 31.50 | |
| P/BV Ratio, Comparison to Industry | |||||||
| Walt Disney Co. | 2.17 | 1.61 | 1.86 | 1.70 | 1.07 | 1.95 | |
| Industry, Consumer Services | 2.72 | 2.45 | 2.39 | 2.26 | 2.13 | – | |
2 Close price on the filing date of Walt Disney Co.'s Annual Report.
| Ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. | Walt Disney Co.'s P/BV ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level. |
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