Walt Disney - Comparative Multiple Analysis

Walt Disney (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Walt Disney

WikiWealth compares Walt Disney's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Walt Disney's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Walt Disney.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Walt Disney's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Walt Disney's Analysis

How does this work? The Comparative Investment Analysis determines the value of Walt Disney by comparing Walt Disney financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Walt Disney.

See the Walt Disney cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Walt Disney.

Also, see the Walt Disney's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Walt Disney's valuation conclusion for a quick summary.