Stock Analysis on Net

Walt Disney Co. (NYSE:DIS)

Enterprise Value to FCFF (EV/FCFF)

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Free Cash Flow to The Firm (FCFF)

Walt Disney Co., FCFF calculation

US$ in millions

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12 months ended: Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016
Net income (loss) attributable to The Walt Disney Company (Disney) 1,995  (2,864) 11,054  12,598  8,980  9,391 
Net income attributable to noncontrolling and redeemable noncontrolling interests 512  390  530  468  386  399 
Net noncash charges 865  10,735  44  2,066  3,087  4,325 
Changes in operating assets and liabilities, net of business acquisitions 2,194  (645) (5,644) (837) (110) (902)
Cash provided by operations 5,566  7,616  5,984  14,295  12,343  13,213 
Interest paid, net of tax1 1,873  1,232  894  560  316  260 
Interest capitalized, net of tax2 185  124  174  111  59  91 
Investments in parks, resorts and other property (3,578) (4,022) (4,876) (4,465) (3,623) (4,773)
Free cash flow to the firm (FCFF) 4,046  4,950  2,176  10,501  9,095  8,791 

Based on: 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), 10-K (reporting date: 2016-10-01).

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 increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

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 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016
Effective Income Tax Rate (EITR)
EITR1 1.00% 21.00% 21.70% 11.30% 32.10% 34.20%
Interest Paid, Net of Tax
Interest paid, before tax 1,892  1,559  1,142  631  466  395 
Less: Interest paid, tax2 19  327  248  71  150  135 
Interest paid, net of tax 1,873  1,232  894  560  316  260 
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 187  157  222  125  87  139 
Less: Interest capitalized, tax3 33  48  14  28  48 
Interest capitalized, net of tax 185  124  174  111  59  91 

Based on: 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), 10-K (reporting date: 2016-10-01).

1 See details »

2 2021 Calculation
Interest paid, tax = Interest paid × EITR
= 1,892 × 1.00% = 19

3 2021 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 187 × 1.00% = 2


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) 286,031 
Free cash flow to the firm (FCFF) 4,046 
Valuation Ratio
EV/FCFF 70.69
Benchmarks
EV/FCFF, Competitors1
Alphabet Inc. 36.95
Charter Communications Inc. 18.80
Comcast Corp. 22.34
Meta Platforms Inc. 32.07
Netflix Inc. 64.76
EV/FCFF, Sector
Media & Entertainment 33.56
EV/FCFF, Industry
Communication Services 26.75

Based on: 10-K (reporting date: 2021-10-02).

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 LibreOffice Calc
Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 318,276  315,627  311,557  189,201  180,273  176,189 
Free cash flow to the firm (FCFF)2 4,046  4,950  2,176  10,501  9,095  8,791 
Valuation Ratio
EV/FCFF3 78.66 63.77 143.18 18.02 19.82 20.04
Benchmarks
EV/FCFF, Competitors4
Alphabet Inc. 29.53 28.19 30.10 27.21 18.22
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
Meta Platforms Inc. 29.32 25.57 28.28 29.69 30.03
Netflix Inc. 95.41
EV/FCFF, Sector
Media & Entertainment 31.07 31.65 28.32 28.10
EV/FCFF, Industry
Communication Services 25.63 24.69 23.39 24.46

Based on: 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), 10-K (reporting date: 2016-10-01).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 318,276 ÷ 4,046 = 78.66

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 decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.