Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis of Disney (DIS) stock:

Technical Analysis

The stock has shown a clear upward trend since early January 2025, rising from around $89 to current levels above $106. However, it's experiencing some recent weakness with a -1.71% decline in the last regular trading session.

Fundamental Strengths

• Strong IP portfolio creating durable competitive advantages
• Improving DTC (streaming) segment profitability
• Record revenue and operating income in parks and consumer products division

Current Challenges

• Recent box office performance concerns with "Captain America: Brave New World" showing significant drop (-68%) in second weekend
• Softer consumer demand affecting theme park attendance
• Competitive pressures in streaming landscape

Valuation & Analyst Consensus

• Forward P/E of 20.9x, trading at a 6% discount to S&P 500
• Projected EPS growth of 10.9% CAGR through fiscal 2027
• Strong analyst consensus with 20 "Strong Buy" ratings out of 29 analysts
• Mean price target of $128.48 implies 12.7% upside potential

Recommendation: SELL Despite Disney's strong fundamentals and analyst optimism, the recent technical weakness and mounting challenges in key business segments suggest taking profits at current levels. The stock appears vulnerable to further near-term pressure from box office disappointments and theme park attendance concerns.

Based on the provided data and market research, here is my price prediction for Disney (DIS) stock in 2025:

Technical Analysis

Price Target Analysis

The stock is likely to reach $135-140 by end of 2025, representing a ~25-30% upside from current levels, driven by:

1. Streaming Profitability: Disney's direct-to-consumer segment has shown improving profitability with two straight quarters of positive operating income. Management expects 10% operating margin in FY2026, indicating strong upside potential.

2. Bundle Strategy Advantage: Disney's unique ability to bundle Disney+, Hulu and ESPN+ provides competitive edge in streaming. The bundling strategy helps maximize revenue, increase engagement and reduce churn.

3. Analyst Consensus: Wall Street maintains a "Strong Buy" rating with mean price target of $128.48 (12.7% upside) and street-high target of $147 (28.9% upside).

Key Catalysts

• Improving streaming economics following Netflix's profitable path
• Cost optimization initiatives showing results
• Strong content slate and theme park performance
• Advertising revenue growth potential

Risk Factors

• Legacy media business challenges
• Rising operational costs
• Competition in streaming
• Macro headwinds

The most likely scenario (60% probability) is the stock reaching $135 by year-end 2025, supported by execution on streaming profitability targets and bundle strategy success. The bullish case of $140+ (25% probability) requires faster-than-expected streaming margin expansion, while the bearish case of sub-$120 (15% probability) could emerge from macro deterioration or execution missteps.

The S1 support level for DIS Stock is $108.26 ,The R1 resistant level for DIS Stock is $111.47.

As of the end of day on 2025-02-26, the price of DIS Stock was $110.65.

The target price for DIS Stock according to analyst rating is 129.67, with the highest price target at 147.00 and the lowest at 115.00. Analysts have a Strong Buy rating on DIS Stock overall.

The market cap of DIS is $199.8B.

Based on the provided data and recent market activity, let me analyze whether DIS is overvalued:

Technical Analysis

The stock is currently trading at $106.77, showing bearish momentum with RSI at 42.81 indicating neutral-to-bearish sentiment. The stock is trading below its 60-day SMA of $111.93, suggesting near-term weakness.

Valuation Metrics

Disney's current valuation metrics show:

• P/E ratio: 63.01x (FY2023) vs 53.97x (FY2022)
• EV/EBITDA: 13.58x (FY2023) vs 18.58x (FY2022)
• P/S ratio: 1.67x (FY2023) vs 2.08x (FY2022)
• P/B ratio: 1.45x (FY2023) vs 1.77x (FY2022)

Financial Performance

Revenue grew from $82.7B in FY2022 to $88.9B in FY2023, but net income declined from $3.15B to $2.35B. Operating margins have compressed with net margin falling from 4.3% to 3.81%.

Conclusion Based on improving fundamentals, successful streaming turnaround, and planned investments in experiences segment, Disney appears fairly valued rather than overvalued at current levels. The declining multiples and Bob Iger's turnaround strategy suggest potential upside from current levels.

The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses the Company’s non-sports focused global film, television and direct-to-consumer (DTC) video streaming content production and distribution activities. Its line of business includes Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment generally encompasses the Company’s sports-focused global television and DTC video streaming content production and distribution activities. Its line of business includes ESPN and Star. Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, Disney Vacation Club, and Disneyland Paris, among others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IPs.

Based on the provided data and analyst reports, here's a projection for Disney (DIS) stock price in 2030:

Disney's stock is projected to reach $175-185 by 2030, driven by its successful streaming business transformation and theme parks growth. The company's streaming segment is expected to achieve a 10% operating margin by fiscal 2026, setting a foundation for continued profitability expansion through 2030. The bundling strategy with Disney+, Hulu, and ESPN+ creates a unique competitive advantage that should drive sustained subscriber growth.

The current forward P/E of 20.9x suggests room for multiple expansion as streaming profitability improves and theme park revenues continue growing, supporting this long-term price target.

DIS has a total of 225000 employees.