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: 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).

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.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel
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


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) 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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
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.