Walt Disney Co. (NYSE:DIS)

The valuation ratios exhibit considerable fluctuation over the observed period, spanning from January 2021 to March 2025. A general trend towards lower multiples is apparent in the later periods, suggesting a potential shift in investor sentiment or company performance relative to its price.

Price to Earnings (P/E)

The Price to Earnings ratio began at an exceptionally high level in July 2021 (289.34) before declining substantially through the subsequent quarters, reaching 60.90 by December 2023. A subsequent increase to 113.35 in March 2024 was followed by a significant decrease to 15.10 by December 2025. This volatility indicates a considerable change in earnings expectations or stock price fluctuations. The most recent value suggests a lower premium investors are willing to pay for each dollar of earnings.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, the Price to Operating Profit ratio demonstrates a decreasing trend from 197.21 in July 2021 to 14.29 in December 2025. The declines are not consistently linear, with some quarterly increases, but the overall direction is downward. This suggests that the market is valuing the company’s operating profitability at a lower multiple over time. The ratio generally tracks the P/E ratio, though at lower levels, as would be expected.

Price to Sales (P/S)

The Price to Sales ratio shows less dramatic fluctuation than the earnings-based ratios. It began at 5.70 in January 2021 and decreased to 1.93 in December 2025. While there are quarterly variations, the ratio generally trends downward, indicating that investors are paying less for each dollar of revenue generated. The ratio remained relatively stable between 1.73 and 2.19 from March 2024 to September 2025.

Price to Book Value (P/BV)

The Price to Book Value ratio also exhibits a declining trend, moving from 4.12 in January 2021 to 1.71 in December 2025. This suggests a decreasing market valuation of the company’s net assets. The ratio experienced a slight increase from 1.55 in June 2024 to 1.90 in June 2025, but ultimately ended lower than its starting point. This could indicate concerns about the quality of assets or future profitability.

In summary, the observed valuation ratios consistently demonstrate a downward trend over the analyzed period. This suggests a potential reassessment of the company’s value by the market, possibly driven by changes in earnings, operating performance, sales growth, or asset valuation. The significant volatility in the P/E ratio warrants further investigation into the underlying factors influencing earnings expectations.

The price-to-earnings (P/E) ratio exhibited considerable fluctuation throughout the observed period, spanning from January 2021 to June 2025. Initial values are unavailable until July 2021, at which point the ratio stood at a high of 289.34. Subsequent quarters demonstrate a general decreasing trend through the end of 2022, followed by periods of both increase and decrease, ultimately concluding at 15.10 in December 2025.

Initial Decline (July 2021 – October 2022)

From July 2021 to October 2022, the P/E ratio experienced a substantial decline, moving from 289.34 to 54.90. This suggests a potential convergence of share price and earnings, or a more rapid increase in earnings relative to share price during this timeframe. The most significant drop occurred between April 2022 and October 2022, decreasing from 72.29 to 54.90.

Volatility and Recovery (December 2022 – June 2024)

Following the decline, the P/E ratio demonstrated increased volatility. It rose to 61.51 by December 2022, then decreased to 32.64 by June 2024. This period indicates a less consistent relationship between share price and earnings, potentially reflecting market uncertainty or company-specific events influencing investor sentiment. A notable increase is observed between March 2024 and June 2024, rising from 113.35 to 32.64.

Recent Trend (June 2024 – June 2025)

The most recent quarters show a gradual increase in the P/E ratio, moving from 32.64 in June 2024 to 15.10 in December 2025. This suggests that the share price has been increasing at a faster rate than earnings, or that earnings have been declining relative to the share price. The ratio experienced its lowest value during the period in December 2025.

Overall, the P/E ratio demonstrates a complex pattern over the analyzed period. The initial high value followed by a significant decline, subsequent volatility, and a recent upward trend suggest dynamic shifts in market perception and the company’s financial performance. The ratio’s movement appears sensitive to changes in both share price and earnings per share.

The Price to Operating Profit (P/OP) ratio exhibits considerable fluctuation over the observed period, spanning from January 2021 to June 2025. Initial values are unavailable until July 2021, at which point the ratio is notably high. Subsequent quarters demonstrate a general decreasing trend, followed by periods of volatility and eventual increases towards the end of the analyzed timeframe.

Initial Period (July 2021 - October 2022)

The P/OP ratio begins at 197.21, decreasing substantially to 26.43 over four quarters. This decline suggests a combination of factors, potentially including increasing operating profit per share relative to the share price, or a decrease in the share price itself. The most significant drop occurs between April 2022 and October 2022.

Volatility and Recovery (December 2022 - June 2024)

Following October 2022, the P/OP ratio experiences fluctuations, ranging from 32.61 to 39.89. A low of 19.06 is observed in June 2024, representing a significant decrease from the prior period. This period indicates a potential shift in investor sentiment or underlying business performance impacting the valuation.

Recent Trend (September 2024 - June 2025)

The P/OP ratio demonstrates an upward trend in the latter part of the period, increasing from 23.75 to 17.26, and then to 14.76. This suggests a potential re-evaluation of the company by investors, possibly driven by improved operating profitability or increased confidence in future earnings. The most recent value, 14.76, represents one of the lowest points in the observed timeframe.

Overall, the P/OP ratio demonstrates a complex pattern. While a general downward trend is apparent over the longer term, significant volatility exists, particularly in the periods following December 2022. The recent increase, followed by a slight decrease, warrants further investigation to determine the underlying drivers and potential implications for future valuation.

The price-to-sales (P/S) ratio exhibited considerable fluctuation throughout the observed period, beginning January 2, 2021, and concluding June 28, 2025. Initially, the ratio demonstrated a declining trend, followed by periods of relative stability and subsequent increases. A detailed examination reveals specific patterns and shifts in valuation.

Initial Decline (Jan 2, 2021 – Oct 1, 2022)

From January 2, 2021, to October 1, 2022, the P/S ratio decreased from 5.70 to 2.09. This represents a substantial reduction, indicating a decreasing valuation relative to sales during this timeframe. The most significant drop occurred between April 2, 2022, and October 1, 2022, coinciding with a decrease in the share price.

Period of Stabilization and Increase (Dec 31, 2022 – Sep 28, 2024)

Following the decline, the P/S ratio experienced a period of stabilization and modest growth. From December 31, 2022, to September 28, 2024, the ratio increased from 2.42 to 2.16. While not a dramatic increase, it suggests a renewed investor confidence or a shift in market perception. There was a dip to 1.73 on June 29, 2024, before recovering to 2.16.

Recent Fluctuations (Dec 28, 2024 – Jun 28, 2025)

The most recent observations, from December 28, 2024, to June 28, 2025, show continued volatility. The P/S ratio decreased from 2.16 to 2.03, then increased slightly to 2.19, before settling at 2.03. This suggests a period of uncertainty or ongoing reassessment by the market. The ratio remains within a relatively narrow range compared to the earlier fluctuations.

Relationship to Sales per Share

Throughout the period, sales per share consistently increased, moving from 33.47 to 52.89. The P/S ratio’s fluctuations, therefore, are primarily driven by changes in the share price, as sales per share exhibited a steady upward trajectory. Periods of decreasing P/S ratios coincided with declines in share price, even as sales per share continued to rise.

In summary, the P/S ratio demonstrated a complex pattern over the analyzed period. The initial decline suggests a period of market correction or reduced investor enthusiasm. The subsequent stabilization and modest increase indicate a potential recovery, while the recent fluctuations suggest ongoing market sensitivity. The consistent growth in sales per share highlights the importance of share price movements in determining the P/S ratio’s overall trend.

The price-to-book value (P/BV) ratio exhibited considerable fluctuation throughout the observed period, beginning January 2, 2021, and concluding December 27, 2025. Initially, the ratio demonstrated a gradual decline from 4.12 to 2.98 by January 1, 2022. A subsequent period of volatility followed, with a low of 1.82 recorded on October 1, 2022, before recovering to 2.12 by December 31, 2022.

Overall Trend

The P/BV ratio generally trended downwards over the entire period, although not consistently. The ratio began at 4.12 and concluded at 1.71. This suggests a decreasing premium that the market placed on the company’s net asset value over time.

Initial Decline (2021-2022)

From January 2021 to January 2022, the P/BV ratio decreased from 4.12 to 2.98. This decline coincided with a period where the share price decreased more rapidly than the book value per share. This could indicate growing investor concerns or a shift in market sentiment.

Volatility and Recovery (2022-2023)

The period between April 2022 and December 2022 was characterized by significant volatility. The ratio reached its lowest point of 1.82 in October 2022, potentially reflecting specific company or market events. A modest recovery followed, bringing the ratio to 2.12 by the end of 2022. The first half of 2023 saw a further decline, reaching a low of 1.64 in July, before stabilizing around 1.81-1.94.

Recent Performance (2024-2025)

From 2024 through the end of the observation period, the P/BV ratio fluctuated between approximately 1.55 and 1.96. A slight upward trend was observed in late 2024 and early 2025, peaking at 1.90, before declining to 1.71 by December 27, 2025. This suggests a recent stabilization, albeit at a lower level than observed in the earlier part of the period.

The book value per share consistently increased throughout the period, while the share price experienced more pronounced fluctuations. This divergence contributed to the observed changes in the P/BV ratio. The decreasing P/BV ratio may suggest that investors became less willing to pay a premium for the company’s net assets over time, or that the market’s expectations for future earnings growth diminished.