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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

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  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.

Historical Valuation Ratios (Summary)

Walt Disney Co., historical price multiples

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    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.

Price to Earnings (P/E)

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    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
1 Data adjusted for splits and stock dividends.
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.

Price to Operating Profit (P/OP)

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    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
1 Data adjusted for splits and stock dividends.
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.

Price to Sales (P/S)

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    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
1 Data adjusted for splits and stock dividends.
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.

Price to Book Value (P/BV)

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    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
1 Data adjusted for splits and stock dividends.
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.