Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Walt Disney Co. (NYSE:DIS)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Walt Disney Co., FCFF calculation

US$ in millions

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12 months ended: Oct 3, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016 Oct 3, 2015
Net income (loss) attributable to The Walt Disney Company (Disney) (2,864) 11,054  12,598  8,980  9,391  8,382 
Net income attributable to noncontrolling and redeemable noncontrolling interests 390  530  468  386  399  470 
Net noncash charges 10,735  44  2,066  3,087  4,325  1,928 
Changes in operating assets and liabilities, net of business acquisitions (645) (5,644) (837) (110) (902) 129 
Cash provided by operations 7,616  5,984  14,295  12,343  13,213  10,909 
Interest paid, net of tax1 1,232  891  487  316  260  200 
Interest capitalized, net of tax2 124  173  97  59  91  70 
Investments in parks, resorts and other property (4,022) (4,876) (4,465) (3,623) (4,773) (4,265)
Free cash flow to the firm (FCFF) 4,950  2,172  10,414  9,095  8,791  6,915 

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

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.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Walt Disney Co.’s FCFF decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Oct 3, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016 Oct 3, 2015
Effective Income Tax Rate (EITR)
EITR1 21.00% 22.00% 22.80% 32.10% 34.20% 36.20%
Interest Paid, Net of Tax
Interest paid, before tax 1,559  1,142  631  466  395  314 
Less: Interest paid, tax2 327  251  144  150  135  114 
Interest paid, net of tax 1,232  891  487  316  260  200 
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 157  222  125  87  139  110 
Less: Interest capitalized, tax3 33  49  29  28  48  40 
Interest capitalized, net of tax 124  173  97  59  91  70 

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 See details »

2 2020 Calculation
Interest paid, tax = Interest paid × EITR
= 1,559 × 21.00% = 327

3 2020 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 157 × 21.00% = 33

Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 390,276 
Free cash flow to the firm (FCFF) 4,950 
Valuation Ratio
EV/FCFF 78.85
Benchmarks
EV/FCFF, Competitors1
Charter Communications Inc. 20.94
Comcast Corp. 24.53
Netflix Inc. 91.60
EV/FCFF, Sector
Media 38.21
EV/FCFF, Industry
Consumer Services 37.09

Based on: 10-K (filing date: 2020-11-25).

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.

Enterprise Value to FCFF Ratio, Historical

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

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Oct 3, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016 Oct 3, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 315,319  311,406  189,047  180,132  175,995  213,380 
Free cash flow to the firm (FCFF)2 4,950  2,172  10,414  9,095  8,791  6,915 
Valuation Ratio
EV/FCFF3 63.71 143.38 18.15 19.80 20.02 30.86
Benchmarks
EV/FCFF, Competitors4
Charter Communications Inc. 20.62 24.57 25.41 31.01 35.35 —
Comcast Corp. 23.35 19.30 19.07 21.87 23.85 —
Netflix Inc. 95.41 — — — — —
EV/FCFF, Sector
Media 35.47 42.30 27.07 24.66 28.34 —
EV/FCFF, Industry
Consumer Services 35.75 31.15 25.62 27.64 25.25 —

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).

1 See details »

2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 315,319 ÷ 4,950 = 63.71

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.’s EV/FCFF ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.