Stock Analysis on Net

Walt Disney Co. (NYSE:DIS)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Walt Disney Co., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
Net income (loss) attributable to The Walt Disney Company (Disney) 2,354 3,145 1,995 (2,864) 11,054 12,598
Net income attributable to noncontrolling and redeemable noncontrolling interests 1,036 360 512 390 530 468
Net noncash charges 6,299 2,009 865 10,735 44 2,066
Changes in operating assets and liabilities 177 488 2,194 (645) (5,644) (837)
Cash provided by operations 9,866 6,002 5,566 7,616 5,984 14,295
Interest paid, net of tax1 1,500 1,132 1,873 1,232 894 560
Interest capitalized, net of tax2 260 175 185 124 174 111
Investments in parks, resorts and other property (4,969) (4,943) (3,578) (4,022) (4,876) (4,465)
Free cash flow to the firm (FCFF) 6,657 2,367 4,046 4,950 2,176 10,501

Based on: 10-K (reporting date: 2023-09-30), 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).

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 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel
12 months ended: Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
Effective Income Tax Rate (EITR)
EITR1 28.90% 32.80% 1.00% 21.00% 21.70% 11.30%
Interest Paid, Net of Tax
Interest paid, before tax 2,110 1,685 1,892 1,559 1,142 631
Less: Interest paid, tax2 610 553 19 327 248 71
Interest paid, net of tax 1,500 1,132 1,873 1,232 894 560
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 365 261 187 157 222 125
Less: Interest capitalized, tax3 105 86 2 33 48 14
Interest capitalized, net of tax 260 175 185 124 174 111

Based on: 10-K (reporting date: 2023-09-30), 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).

1 See details »

2 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 2,110 × 28.90% = 610

3 2023 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 365 × 28.90% = 105


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 259,086
Free cash flow to the firm (FCFF) 6,657
Valuation Ratio
EV/FCFF 38.92
Benchmarks
EV/FCFF, Competitors1
Alphabet Inc. 25.64
Charter Communications Inc. 19.99
Comcast Corp. 16.72
Meta Platforms Inc. 27.51
Netflix Inc. 36.29
EV/FCFF, Sector
Media & Entertainment 25.95
EV/FCFF, Industry
Communication Services 23.39

Based on: 10-K (reporting date: 2023-09-30).

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

Microsoft Excel
Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 210,045 213,557 318,276 315,627 311,557 189,201
Free cash flow to the firm (FCFF)2 6,657 2,367 4,046 4,950 2,176 10,501
Valuation Ratio
EV/FCFF3 31.55 90.23 78.66 63.77 143.18 18.02
Benchmarks
EV/FCFF, Competitors4
Alphabet Inc. 23.84 20.67 27.17 29.53 28.19
Charter Communications Inc. 20.51 17.68 16.46 20.62 24.57
Comcast Corp. 17.60 17.93 15.77 20.50 18.00
Meta Platforms Inc. 26.42 24.09 15.40 29.48 25.83
Netflix Inc. 33.81 77.11 335.37 95.41
EV/FCFF, Sector
Media & Entertainment 24.48 23.09 24.10 30.50 31.28
EV/FCFF, Industry
Communication Services 22.23 22.97 30.26 25.42 24.63

Based on: 10-K (reporting date: 2023-09-30), 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).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 210,045 ÷ 6,657 = 31.55

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 2021 to 2022 but then decreased significantly from 2022 to 2023.