Walt Disney Co. (NYSE:DIS)

The financial data indicates distinct trends in market value, invested capital, and market value added over the reported periods.

Market (fair) value of Disney

The market value showed a gradual increase from US$332,614 million in 2019 to a peak of US$352,036 million in 2021. However, it experienced a significant decline in 2022 to US$233,647 million, maintaining a similar level in 2023, before partially recovering to US$249,753 million in 2024. This suggests notable volatility, with a major drop post-2021 followed by modest recovery.

Invested capital

Invested capital remained relatively stable throughout the period, fluctuating narrowly around the US$170,000 million mark. It started at US$169,178 million in 2019, slightly increased to around US$174,000 million during 2020-2022, and then decreased towards US$166,066 million by 2024. This indicates a consistent level of capital investment with minor reductions in more recent years.

Market value added (MVA)

Market value added followed a pattern similar to the market value, increasing from US$163,436 million in 2019 to a high of US$179,102 million in 2021. This was followed by a sharp decline to around US$59,670 million in 2022 and a further slight drop in 2023. In 2024, MVA showed improvement, rising to US$83,687 million, reflecting a partial recovery but still substantially lower than pre-2022 levels.

Overall, the data reveals that while the company's invested capital remained steady over the analyzed years, the market perception as reflected in market value and market value added exhibited significant fluctuations, particularly a marked downturn beginning in 2022 with signs of recovery by 2024.

Market Value Added (MVA)

Over the analyzed period, the Market Value Added initially increased from 163,436 million US dollars in 2019 to a peak of 179,102 million US dollars in 2021. Following this peak, a significant decline occurred in 2022, with MVA dropping sharply to 59,670 million US dollars. This downward trend continued into 2023, reaching 58,367 million US dollars, before partially recovering to 83,687 million US dollars in 2024. This pattern indicates a period of contraction or decreased market value during 2022 and 2023, followed by some improvement in 2024.

Invested Capital

Invested capital demonstrated relatively stable levels throughout the period, starting at 169,178 million US dollars in 2019 and showing a slight upward trend to 174,594 million in 2020. It slightly decreased in 2021 to 172,934 million, then remained almost constant through 2022 and 2023 at approximately 173,977 and 173,764 million respectively. In 2024, invested capital decreased noticeably to 166,066 million US dollars. Overall, despite minor fluctuations, the capital base remained largely consistent until the moderate reduction observed in the most recent year.

MVA Spread Ratio

The MVA spread ratio, reflecting the relationship between market value added and invested capital, followed a trend similar to the MVA itself. Starting under 100% at 96.61% in 2019, it increased to a high of 103.57% in 2021, suggesting that the company's market value exceeded the invested capital by a significant margin at that time. Subsequently, the ratio declined sharply to 34.3% in 2022 and further slightly to 33.59% in 2023, indicating a substantial decrease in value generation relative to capital invested. In 2024, the ratio rebounded partially to 50.39%, consistent with the observed partial recovery in MVA. This trend demonstrates reduced market valuation relative to invested capital during 2022 and 2023, with some positive movement in the latest year.

Market Value Added (MVA)

The market value added exhibited an overall fluctuating trend across the periods. Starting at 163,436 million USD in 2019, it increased modestly to 176,716 million USD in 2020 and slightly more to 179,102 million USD in 2021. However, there was a substantial decline in 2022 to 59,670 million USD, which remained relatively stable in 2023 at 58,367 million USD, before rising again to 83,687 million USD in 2024. This pattern indicates a significant drop in perceived market value in 2022 and 2023, followed by a recovery phase in 2024.

Adjusted Revenues

Adjusted revenues demonstrated a positive overall trajectory over the examined years. Beginning at 70,704 million USD in 2019, revenues decreased to 64,920 million USD in 2020, reflecting a notable dip. From 2021 onward, revenues recovered and increased consistently, reaching 67,865 million USD, then jumping to 84,532 million USD in 2022, further increasing to 88,985 million USD in 2023, and peaking at 91,261 million USD in 2024. This indicates a strong recovery and upward momentum in revenue generation after 2020.

MVA Margin

The MVA margin exhibited significant volatility in connection with trends observed in market value added and revenues. The margin was very high in 2019 at 231.16%, increasing even further to 272.21% in 2020, before slightly declining to 263.91% in 2021. A marked drop occurred in 2022 to 70.59%, with a slight decrease to 65.59% in 2023. The most recent data for 2024 shows a recovery to 91.7%. These fluctuations in MVA margin suggest a period of reduced efficiency or market confidence starting in 2022, partially reversing by 2024.