Walt Disney Co. (NYSE:DIS)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio shows a generally declining trend from the period starting October 2, 2021, through September 27, 2025. Initially, the P/E ratio was extremely elevated, peaking near 289.34 before consistently dropping to around 15.49 by the last observed period. The most significant reductions occurred between early 2024 and the end of 2025, indicating a possible improvement in earnings relative to price or a market reassessment of earnings expectations. Temporary fluctuations, such as the spike to 113.35 in early 2024, suggest intermittent market volatility or earnings anomalies.

Price to Operating Profit (P/OP) Ratio

A similar declining trend is noted in the Price to Operating Profit ratio. Starting at very high levels above 197 in late 2021, the ratio steadily trends downward to about 14.76 by late 2025. This consistent decrease reflects improved operating profitability compared to market valuation or an adjustment in investor expectations regarding operating earnings. Despite the steady overall decline, there are short-term upticks around early 2024 and early 2025, indicating possible fluctuations in operating profit margins or market valuation shifts.

Price to Sales (P/S) Ratio

The Price to Sales ratio has declined from 5.7 at the start of 2021 to between approximately 1.73 and 2.19 in the later periods approaching 2025. This reduction appears gradual without extreme swings, suggesting a steady alignment between sales valuation and stock price. The ratio stabilizes around the low two range in the most recent years, reflecting more conservative valuation in relation to sales or relatively stable sales growth compared to market capitalization.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio demonstrates a downward trend from above 4.1 in early 2021 to near 1.75 by the end of the observed timeline. The decrease is gradual with some fluctuations, indicating a reduction in price premium over the book value of equity. This trend could reflect changes in investor confidence, asset valuation adjustments, or book value growth relative to market price. The ratio remains relatively stable in the range of 1.55 to 1.96 in the last few years, indicating a narrower gap between market valuation and book value.

Overall Analysis

Across all observed valuation metrics, there is a clear pattern of declining ratios from late 2021 through to 2025. High initial valuation multiples indicate either peak optimism or temporarily diminished earnings and profitability figures in 2021. The progressive decline in P/E, P/OP, P/S, and P/BV ratios suggests normalization of valuations possibly driven by improving financial performance or changes in market sentiment. The relative stability of Price to Sales and Price to Book ratios in the latter periods implies an equilibrium where market prices align more closely with underlying sales and asset values, whereas earnings-based multiples show greater variability reflecting shifts in profitability and investor expectations over time.

The analysis of the quarterly financial data reveals several key trends regarding share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio over the observed periods.

Share Price

The share price demonstrated notable volatility throughout the timeframe. Initially, it declined from a high point of approximately $190.91 to a lower level near $94.69 by late 2022. Following this decline, the price showed oscillations, including partial recoveries and decreases, without establishing a consistent upward or downward trajectory. Between early 2023 and mid-2025, the share price fluctuated generally between $85.96 and $115.17, indicating an uncertain market sentiment or external factors influencing valuation.

Earnings Per Share (EPS)

EPS showed a marked improvement over time. The early periods were characterized by negative values (-2.73 and -2.48), indicating losses per share. However, beginning mid-2021, EPS turned positive and generally increased, with some fluctuations occurring in subsequent quarters. Notably, EPS rose substantially from below $2 in early 2022 to peaks exceeding $6 by late 2025. This suggests consistent improvement in profitability and operational performance throughout the periods.

Price-to-Earnings (P/E) Ratio

The P/E ratio data starts appearing from the third quarter of 2021, showing initially very high values (exceeding 280), which typically reflect market expectations of future growth or elevated share prices relative to earnings. Over time, the P/E ratio generally decreased, falling below 20 by mid-2025, indicative of either rising earnings, declining share prices, or a combination of both. The declining trend in P/E signals a potential reevaluation by the market of the price paid for earnings, possibly reflecting improved earnings quality or market stabilization.

In summary, despite initial challenges reflected in negative earnings and high P/E ratios, the company demonstrated improving profitability as measured by EPS. Concurrently, the share price experienced significant fluctuations but maintained a moderate range in the later periods. The P/E ratio declines correspond with rising earnings, indicating enhanced valuation rationality. These trends collectively suggest a transition from early financial stress or uncertainty towards stronger financial performance and market reassessment over the observed quarters.

The financial data reveals several notable trends regarding the company's share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the examined periods.

Share Price Trends

The share price experienced a general decline from the beginning of 2021, starting at $190.91 and decreasing steadily through 2022 to a low of approximately $85.96 in mid-2024. Following this low, there was a period of recovery, with the price rising again to reach around $115.17 by late 2025. Despite this partial recovery, the share price remained below the initial 2021 level across most periods, indicating some volatility and downward pressure over the timeframe.

Operating Profit Per Share Trends

The operating profit per share showed an overall improving trend throughout the periods. It began with negative values (-$2.47 to -$2.57) in early 2021, indicating operating losses. However, from the third quarter of 2021 onward, it turned positive and displayed a consistent upward trajectory, reaching $7.29 by the third quarter of 2025. This signifies strengthening operational profitability over time with some fluctuations, particularly notable increases in late 2024 and 2025.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio, which was not available for the initial periods, exhibited a significant decline over time. Starting extremely high at 197.21 in the third quarter of 2021, it dropped progressively to lower levels near 14.76 by the third quarter of 2025. This decrease reflects that the share price is becoming more aligned with the growing operating profits, implying improved valuation relative to earnings from operations. Despite periodic fluctuations, the trend suggests increasing investor confidence in the company's ability to generate operating profits.

Overall Insights

The company transitioned from operating losses to substantial profits per share over the analyzed quarters, reflecting an improvement in operational efficiency or business conditions. The fall in share price during the initial years contrasted with rising operating profits, leading to initially inflated P/OP ratios and suggesting the market may have been undervaluing the company’s earnings potential during that period. Subsequently, the share price recovery combined with continuing profit growth helped normalize this ratio to more reasonable levels.

In summary, the data signals a turnaround in operational performance accompanied by market valuation adjustments. While the share price has not returned to its peak values seen in early 2021, the strengthened profitability and lower P/OP ratios indicate improved financial health and potentially more attractive valuation metrics for investors moving forward.

The analysis of the quarterly financial data reveals significant trends and fluctuations in key metrics over the observed periods.

Share Price

The share price exhibits a pronounced downward trend from early 2021 through mid-2024, declining from a high near 191 US dollars to a low around 86 US dollars. After this trough, there is a recovery phase starting in the latter half of 2024, with the share price rising again to approximately 115 US dollars by late 2025. Throughout this period, the share price demonstrates considerable volatility, reflecting varying market conditions and investor sentiment.

Sales per Share

Sales per share show a consistent upward trend across all quarters covered. Starting at about 33.47 US dollars in early 2021, sales per share increase steadily to nearly 53 US dollars by late 2025. This steady rise suggests ongoing growth in revenue generation relative to the number of shares outstanding, indicating improved operational performance or expansion over time.

Price-to-Sales (P/S) Ratio

The P/S ratio declines substantially from 5.7 at the beginning of 2021 to a low near 1.73 around mid-2024, aligning with the period of decreasing share price. The ratio subsequently rises moderately in the following quarters, reaching values slightly above 2.0 by the end of 2025. This movement implies that the market valuation relative to sales decreased significantly during the early period but began to recover later, possibly reflecting changing investor perceptions of growth potential or profitability.

Overall, the data reflect a period of initial market value contraction despite continuous sales growth, followed by a gradual restoration of market confidence and valuation multiples. The sustained increase in sales per share amidst fluctuating share prices suggests strengthening revenue fundamentals, whereas the changes in P/S ratio highlight shifting market valuations over time.

The financial data reveals several notable trends over the indicated periods regarding the share price, book value per share (BVPS), and their relationship as expressed through the price-to-book value (P/BV) ratio.

Share Price

The share price exhibited volatility throughout the analyzed quarters. Starting at a high of 190.91 US$ in early 2021, it experienced a general downward trend until early 2023, reaching as low as 85.96 US$. Subsequent quarters showed some recovery, with fluctuations around the 100 US$ mark and occasional peaks and troughs. The share price did not return to the initial high observed at the start of the period within the timeframe considered, indicating a period of relative decline followed by partial stabilization.

Book Value per Share (BVPS)

BVPS demonstrated a steady and gradual increase across all periods. Beginning at 46.31 US$ in early 2021, it consistently rose quarter by quarter, reaching 61.54 US$ by mid-2025. This reflects a persistent growth in the company's net asset value on a per-share basis, suggesting improvements or accumulation of equity over time.

Price to Book Value Ratio (P/BV)

The P/BV ratio followed a declining trajectory from over 4.0 at the start of 2021 to below 2.0 in 2025. The ratio dropped markedly in the first half of the period, indicating that the market price per share was falling relative to the company's book value per share. Although there were minor fluctuations, the P/BV ratio remained significantly lower than the initial values, staying mostly between 1.5 and 2.0 in later periods. This suggests a market reassessment resulting in more conservative valuations relative to the company's book value.

Overall, the data suggests that while the company has steadily built its intrinsic equity, as reflected by the increasing BVPS, the market price for its shares has been more volatile, with an overall decline relative to this book value growth. The diminishing P/BV ratio indicates heightened market caution or reevaluation of growth prospects or risk factors affecting market sentiment. The disconnect between improving book value and more fluctuating share prices might warrant further examination of external market conditions, company-specific risks, or earnings performance for comprehensive insight.