DIS

Walt Disney Co (The)

TMT, Consumer


Presented:03/03/2023
Price:$101.14
Cap:$184.76B
Current Price:$94.22
Cap:$170.88B

Presented

Date03/03/2023
Price$101.14
Market Cap$184.76B
Ent Value$211.36B
P/E Ratio55.61x
Book Value$52.66
Div Yield0%
Shares O/S1,826.81M
Ave Daily Vol12,784,870
Short Int0.93%

Current

Price$94.22
Market Cap$170.88B
The Walt Disney Co. is a diversified international family entertainment and media enterprise. It operates through the following segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). The DMED segment encompasses the company's global film and episodic television content production and distribution activities. The DPEP segment includes significant lines of business like parks and experiences and consumer products. The company was founded by Walter Elias Disney on October 16, 1923 and is headquartered in Burbank, CA.

Publicly traded companies mentioned herein:  Cedar Fair, L.P. (FUN), Netflix Inc. (NFLX), SeaWorld Entertainment Inc (SEAS), Six Flags Entertainment Corp. (SIX), Walt Disney Co. (DIS)

Highlights

The presenter is short shares of Walt Disney Co (DIS), noting that the company has structural headwinds in all of its business segments, making the prospects of value creation by the new management team extremely difficult going forward. Disney is now divided into three main, cooperative business segments: Entertainment, ESPN and Parks, following the change by CEO, Robert Iger in February 2023. Entertainment houses the whole portfolio of entertainment media and content companies operated by the firm, including Disney+ and Hulu. ESPN comprises all of the sports-related services, products, and experiences offered by the corporation across all of Disney's platforms, including its foreign sports channels, and includes ESPN networks and ESPN+. Finally Parks, as its name implies, covers all the park operations. The presenter predicts that the following negative factors will exert pressure on growth for the company and weigh on EBITDA and the multiple for the stock.

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Idea Discussion

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