Walt Disney Co., FCFF calculation

US$ in millions

12 months ended:	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018	Sep 30, 2017
Net income (loss) attributable to The Walt Disney Company (Disney)	3,145)	1,995)	(2,864)	11,054)	12,598)	8,980)
Net income attributable to noncontrolling and redeemable noncontrolling interests	360)	512)	390)	530)	468)	386)
Net noncash charges	2,009)	865)	10,735)	44)	2,066)	3,087)
Changes in operating assets and liabilities	488)	2,194)	(645)	(5,644)	(837)	(110)
Cash provided by operations	6,002)	5,566)	7,616)	5,984)	14,295)	12,343)
Interest paid, net of tax¹	1,132)	1,873)	1,232)	894)	560)	316)
Interest capitalized, net of tax²	175)	185)	124)	174)	111)	59)
Investments in parks, resorts and other property	(4,943)	(3,578)	(4,022)	(4,876)	(4,465)	(3,623)
Free cash flow to the firm (FCFF)	2,367)	4,046)	4,950)	2,176)	10,501)	9,095)

Based on: 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30).

^{1, 2} See details »

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Walt Disney Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Walt Disney Co. FCFF decreased from 2020 to 2021 and from 2021 to 2022.

Walt Disney Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018	Sep 30, 2017
Effective Income Tax Rate (EITR)
EITR¹	32.80%	1.00%	21.00%	21.70%	11.30%	32.10%
Interest Paid, Net of Tax
Interest paid, before tax	1,685)	1,892)	1,559)	1,142)	631)	466)
Less: Interest paid, tax²	553)	19)	327)	248)	71)	150)
Interest paid, net of tax	1,132)	1,873)	1,232)	894)	560)	316)
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax	261)	187)	157)	222)	125)	87)
Less: Interest capitalized, tax³	86)	2)	33)	48)	14)	28)
Interest capitalized, net of tax	175)	185)	124)	174)	111)	59)

Based on: 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30).

¹ See details »

² 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 1,685 × 32.80% = 553

³ 2022 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 261 × 32.80% = 86

Walt Disney Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	209,962)
Free cash flow to the firm (FCFF)	2,367)
Valuation Ratio
EV/FCFF	88.71
Benchmarks
EV/FCFF, Competitors¹
Activision Blizzard Inc.	24.56
Alphabet Inc.	24.14
Comcast Corp.	17.95
Meta Platforms Inc.	33.73
Netflix Inc.	85.90
EV/FCFF, Sector
Media & Entertainment	27.65
EV/FCFF, Industry
Communication Services	25.81

Based on: 10-K (reporting date: 2022-10-01).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Walt Disney Co., historical EV/FCFF calculation, comparison to benchmarks

	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019	Sep 29, 2018	Sep 30, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	213,557)	318,276)	315,627)	311,557)	189,201)	180,273)
Free cash flow to the firm (FCFF)²	2,367)	4,046)	4,950)	2,176)	10,501)	9,095)
Valuation Ratio
EV/FCFF³	90.23	78.66	63.77	143.18	18.02	19.82
Benchmarks
EV/FCFF, Competitors⁴
Activision Blizzard Inc.	23.45	23.34	31.06	23.27	17.19	—
Alphabet Inc.	20.67	27.17	29.53	28.19	30.10	—
Comcast Corp.	17.93	15.77	20.50	18.00	18.48	—
Meta Platforms Inc.	23.91	15.39	29.47	25.81	28.28	—
Netflix Inc.	77.11	335.37	95.41	—	—	—
EV/FCFF, Sector
Media & Entertainment	23.56	24.76	31.55	31.79	28.02	—
EV/FCFF, Industry
Communication Services	23.29	31.34	25.80	24.61	23.05	—

Based on: 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 213,557 ÷ 2,367 = 90.23

⁴ Click competitor name to see calculations.

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Walt Disney Co. EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.

Walt Disney Co. (NYSE:DIS)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical