Highly Regarded

Is The Walt Disney Company (DIS) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Communication Services sector peers in our coverage

41% Discount TTM fundamentals · sector averages from covered peers

DIS trades at 14.3× TTM earnings — a 41% discount to its Communication Services sector average of 24.1× in our coverage.

The Numbers

P/E (TTM)

14.3×

Sector avg: 24.1×

P/S (TTM)

1.8×

Sector avg: 6.7×

Market Cap

$172.55B

EPS (TTM): $6.80

Revenue (TTM)

$95.72B

Net income: $13.27B

Communication Services Peer Comparison

How DIS's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
DIS This page $97.40 14.3×
GOOGL $366.44 33.9×
META $600.39 25.6×
NFLX $76.04 30.1×
T $20.59 6.8×

Is the Discount Justified?

July 6, 2026

The Walt Disney Company trades at a P/E of 14.3x, a discount to the Communication Services sector average of 22.1x. Recent Q1 fiscal 2026 results showed a 5% revenue increase, but total segment operating income decreased 9%, and diluted EPS declined. The Experiences segment achieved record revenue and operating income, while streaming (SVOD) operating income improved to $450 million with an 8.4% margin. The company's net profit margin for the last twelve months was 11.5%, up from 9.4% a year prior. Analysts forecast slower earnings and revenue growth compared to historical rates. This valuation reflects ongoing investments in streaming and parks, coupled with competitive pressures and the market's assessment of its ability to drive consistent, profitable growth across diverse segments.

Sources

Frequently Asked Questions

Is DIS overvalued or undervalued?
On trailing-twelve-month earnings, DIS trades at 14.3x versus a Communication Services sector average of 24.1x in our coverage — a 40.5% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing DIS with its own Communication Services peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Communication Services names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Communication Services peers

T META NFLX GOOGL VZ