Walt Disney Co. (NYSE:DIS)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibits significant variability over the periods analyzed. Initially, data is unavailable except from December 2019 onward, where the ratio fluctuates widely. It peaks sharply in the quarters around early 2021, reaching as high as 289.34, indicating an atypical spike, possibly due to extraordinary earnings changes or market valuation shifts. Following this peak, the ratio generally trends downward through 2022 and 2023, settling between approximately 20.6 and 73.44 in the later quarters. This downward correction suggests a normalization or increase in earnings relative to price. Notably, the lowest values are observed toward the end of the data series, which could imply improved earnings or a reduction in market price expectations.

Price to Operating Profit (P/OP) Ratio

This ratio shows a similarly volatile pattern with some extreme outliers. Early periods lack data, but starting from late 2019, there is a range from about 21.67 to an extraordinary high of 242.78 in mid-2020, reflecting significant fluctuations in operating profitability or market valuation. Subsequent quarters show a downward trend with intermittent rises, stabilizing around the mid-30s to low 20s by the end of 2024. The decreasing trend after the peak indicates improved operating profitability or depreciation in price-to-profit multiples, suggesting a potential recovery or market reassessment after a period of strain.

Price to Sales (P/S) Ratio

The Price to Sales ratio begins with somewhat higher values in late 2019 through 2021, consistently above 3.0 and reaching a maximum near 5.7. Mid-2021 forward, a gradual decline is observed, with ratios moving towards values mostly between 1.7 and 2.5. This suggests either an increase in sales relative to price or a contraction in valuation multiples. The relative stability in later periods compared to earlier volatility indicates a more consistent sales performance or a market revaluation aligning price more closely with revenue streams.

Price to Book Value (P/BV) Ratio

This ratio, available for the full period, indicates a modest decline over time. Starting at 3.34 at the end of 2018, it experiences fluctuations but predominantly trends downward. By the latter part of the series in 2024 and early 2025, it settles closer to values between 1.55 and 1.96. This pattern reflects a gradual market price adjustment towards the company’s book value, possibly indicating a more conservative market view of assets or equity value over the period. The reduction in P/BV ratio may also imply less speculative valuation or improved balance sheet strength relative to price.

Share Price Trends

The share price initially increased from $112.66 at the end of 2018 to a peak of $190.91 by early 2021. This growth trend was interrupted by fluctuations thereafter, notably a decline to $94.69 by late 2022. Subsequently, the share price showed volatility, bouncing between approximately $85.96 and $111.78 during 2023 and into early 2024. By the end of the most recent quarter in March 2025, the share price slightly decreased to $102.09, indicating moderate recovery after the downward movements.

Earnings Per Share (EPS) Movements

EPS data began from mid-2019, registering at $6.13 and experiencing a decline to negative values in 2020, with the lowest being -$2.73 by early 2021. This negative trend coincided with significant operational challenges. Beginning mid-2021, EPS improved progressively, shifting back into positive territory and displaying sustained growth, reaching $4.96 by the first quarter of 2025. This upward recovery in earnings indicates improved financial performance over the recent periods.

P/E Ratio Analysis

The Price-to-Earnings ratio initially rose to approximately 34 in mid-2019 but became unavailable or unreliable during the period of negative EPS in 2020 and early 2021. From late 2021 onward, the P/E ratio exhibited extremely high values early on, exceeding 200, before gradually declining over successive quarters. It reached a more normalized range around the 20-70 interval, with periodic spikes such as 113.35 and 73.44, reflecting fluctuations in investor sentiment and earnings volatility. By early 2025, the P/E ratio declined to about 20.6, indicating a valuation potentially more aligned with earnings improvements.

Overall Financial Insight

The data reflects a period of considerable financial volatility, particularly marked by a deterioration during 2020, likely linked to external challenges affecting profitability. The subsequent recovery phase shows marked improvements in earnings and a modest correction in share price levels. The P/E ratio's pattern underscores market uncertainty during financial downturns and increasing confidence as earnings strengthened. The recent quarters suggest a stabilization in fundamental performance coupled with moderate share price fluctuations, pointing to cautious market optimism.

The share price exhibits notable volatility across the observed periods. Initially, it shows an upward trend from December 2018, peaking around January 2021. Following this peak, the share price declines substantially, reaching lower levels by mid-2023 before demonstrating some recovery towards the end of the dataset.

Operating profit per share (OPPS) data begins in the third quarter of 2019 and reveals a downward trend during early 2020, becoming negative through most of 2020 and early 2021. This negative performance coincides with a sharp contraction in operational profitability. However, from late 2021 onward, operating profit per share gradually improves, turning positive and increasing steadily, indicating a recovery and strengthening profitability that continues through early 2025.

The price-to-operating-profit (P/OP) ratio mirrors these movements but with marked extremes. In the periods where operating profit per share dipped into negative territory, the P/OP ratio reaches exceptionally high values, reflecting investor uncertainty or market stress related to profitability issues. As operating profits recover, the P/OP ratio declines significantly, indicating improved valuation relative to profits and a normalization in investor sentiment. By 2025, the P/OP ratio has decreased to more moderate levels in comparison to the peaks during the downturn phase.

Overall, the data indicates a period of financial stress around 2020, with suppressed operating profit per share and elevated valuation multiples. Subsequently, there is a clear recovery trend in profitability metrics and more balanced valuation ratios, though the share price remains somewhat volatile and below earlier peaks, suggesting market factors or external uncertainties may continue to influence investor confidence.

Share Price

Rising from late 2018 to early 2021, followed by a decline and partial recovery up to early 2025.

Operating Profit Per Share

Emerges positive in 2019, turns negative during 2020, then recovers consistently through 2025.

Price-to-Operating-Profit Ratio

Extremely elevated during negative profit periods, decreases as profitability improves, stabilizing at more moderate levels later.

Share Price Trends

The share price exhibited significant fluctuations over the examined periods. Initially, it increased from $112.66 to a peak near $190.91 in early 2021. This was followed by a steady decline throughout 2022, reaching lows below $90 in late 2023. The most recent quarters show some recovery, with prices stabilizing around the $100 to $110 range.

Sales Per Share Development

Sales per share showed a generally upward trend across the periods. Starting from around $38.60, the figure consistently increased, reaching approximately $52.31 in the final reported quarter. Although there were minor dips during certain intervals, overall sales per share improved steadily, indicating growth in revenue contributions on a per-share basis.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio experienced considerable variation. Early on, it hovered around 3.81 before declining sharply to about 2.33. Subsequently, the ratio rose to a notable peak of 5.7 in early 2021, likely reflecting the peak share price relative to sales. After this peak, the P/S ratio demonstrated a downward trajectory, falling below 2.0 towards late 2023, and remained volatile around this lower range subsequently. This trend reflects changing market valuation dynamics relative to sales performance.

Overall Insights

The data indicates a disconnect between improving sales per share and a share price that underwent significant volatility and decline after early 2021. The elevated P/S ratios during peak share prices suggest that market valuation outpaced revenue improvements at times. The later reduction in P/S ratios aligns with share price decreases despite continued sales increases, possibly highlighting market concerns beyond sales growth, such as profitability, external factors, or investor sentiment shifts.

The share price exhibited notable volatility over the analyzed periods. Beginning at approximately 112.66 US dollars, it rose to a peak near 190.91 US dollars by early 2021, demonstrating a significant upward trend. However, subsequent quarters saw a downward correction, with the price falling to the mid-90s and even mid-80s range during 2023. Recent data in 2024 suggest moderate recovery, though levels remain below the peak values observed in 2021.

Book value per share (BVPS) showed a generally steady upward trajectory throughout the timeframe. Starting around 33.75 US dollars, BVPS increased consistently, reaching over 58 US dollars by early 2025. This reflects an overall strengthening in the company's net asset per share, despite market fluctuations.

The price-to-book value ratio (P/BV) experienced considerable fluctuations, mirroring the interaction between the share price and BVPS movements. The ratio ranged from a high above 4 around early 2021, suggesting market valuation significantly exceeding the book value, down to lows near 1.55 in late 2024, indicating a more conservative market valuation relative to book value. Periods of share price decline coincided with substantial drops in P/BV, reinforcing the sensitivity of valuation multiples to market sentiment and share price dynamics.

Share Price Trends

Initial growth from late 2018 through early 2021 was pronounced, culminating in a peak around 190 US dollars.

The share price declined through 2022 and 2023, with lows approaching mid-80s US dollars, before partial recovery in 2024.

Book Value Per Share (BVPS) Trends

Consistent, gradual increase across all quarters, rising from mid-30s to nearly 60 US dollars over the analyzed period.

The steady growth in BVPS implies strengthening in equity value per share despite market volatility.

Price-to-Book Value Ratio (P/BV) Trends

The ratio peaked above 4 during early 2021, reflecting heightened market optimism or premium valuation.

Significant declines followed, with P/BV reaching lows near 1.55 by late 2024, indicating a more cautious market stance.

The ratio movements were primarily driven by share price variability as BVPS showed a stable upward trend.