Is The Walt Disney Company (DIS) Fairly Valued?
The Walt Disney Company valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of June 26, 2026.
By TGMCharts Research / 5 min read / Data as of / Updated
Valuation read
The Walt Disney Company does not get a one-metric verdict. The stock trades at 15.78x trailing earnings and the TGMCharts fair-value model is $104, so the valuation read depends on whether growth and margins support that price.
The core evidence is the relationship between price, earnings, fair value, and business support. Five-year revenue CAGR is 9.41%, five-year EPS CAGR is 0.49%, and net margin is 11.54%. Those facts decide whether the multiple is defensible or stretched.
What to watch
- A material move away from the fair-value anchor of $104.
- A break in five-year EPS support, currently 0.49%.
- Margin quality drifting away from the latest net margin of 11.54%.
From the latest filing
10-Q · filed 2026-05-06 · period 2026-03-28 · SEC EDGAR source
- “Product revenues for the quarter increased 5%, or $0.1 billion, to $2.5 billion due to growth at our parks and experiences businesses.”
- “Costs and expenses Cost of services for the quarter increased 8%, or $1.0 billion, to $14.4 billion, which included an approximate 3 percentage point increase from the Fubo Transaction and, to a lesser extent, NFL Transaction.”
- “Selling, general, administrative and other costs increased 2%, or $0.1 billion, to $4.1 billion due to higher marketing costs.”
- “Depreciation and amortization increased 6%, or $0.1 billion, to $1.4 billion driven by higher depreciation at Experiences and Entertainment, partially offset by lower amortization of intangible assets.”
Key takeaways
- -The Walt Disney Company closed at $98.79 on June 26, 2026.
- -Trailing P/E is 15.78x and price-to-sales is 1.80x.
- -Model fair value is $104 with margin of safety at 5.12%.
- -Five-year revenue CAGR is 9.41% and five-year EPS CAGR is 0.49%.
- -Earnings yield is 6.34% and net margin is 11.54%.
Valuation snapshot
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Executive Summary
Analyzing the intrinsic worth of The Walt Disney Company requires balancing market-driven multiples against underlying operational performance. On June 26, 2026, the equity concluded trading at $98.79, translating to a trailing price-to-earnings multiple of 15.78x. This market pricing sits below the quantitative fair value estimate generated by the TGMCharts model, which stands at $104 and implies a positive margin of safety of 5.12%.
Rather than relying on a solitary valuation metric, this research insight integrates earnings multiples, model-derived fair values, top-line expansion, and margin durability. Assessing these metrics in unison helps clarify if the current market price is fundamentally justified or if it relies too heavily on optimistic expansion assumptions. If operational metrics diverge from the market price, a more conservative outlook is warranted.
Price And Multiple Context
To determine if the market is pricing the equity reasonably, we must first examine the prevailing multiples. The company currently commands a price-to-sales ratio of 1.80x, which corresponds to an earnings yield of 6.34%. Reviewing these metrics alongside historical trends prevents an overreliance on the headline P/E ratio, providing a broader view of how the market values both sales and earnings across different market cycles.
Supporting exhibit 2
Exhibit: DIS price history
The price chart shows whether the valuation question is being driven by recent share-price movement.
Latest close: $98.79 as of June 26, 2026.
DIS Price Chart
The close at $98.79 is the market anchor for this note. The fair-value model sits at $104, so the price chart helps separate a business-quality question from a market-entry-price question.
Primary exhibit
Exhibit: DIS P/E ratio history
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 15.78x as of June 26, 2026.
DIS DIS P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
A P/E ratio of 15.78x has to be judged against the company's five-year EPS CAGR of 0.49%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
Supporting exhibit 3
Exhibit: DIS price-to-sales history
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 1.80x.
DIS DIS price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Price-to-sales at 1.80x is most useful beside net margin of 11.54%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Fair Value And Margin Of Safety
The model-derived fair value provides an objective benchmark against volatile market pricing. With the quantitative model placing the fair value at $104, the equity trades at a discount relative to its calculated worth, leaving a margin of safety of 5.12%. While this discount suggests the stock is undervalued, the gap is modest enough that the long-term thesis remains highly dependent on the quality and consistency of the underlying business.
Valuation evidence table
A compact cross-check of price, model value, growth, and profitability support.
Counterpoint exhibit 4
Exhibit: DIS earnings yield history
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 6.34%.
DIS DIS earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
The earnings yield of 6.34% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Growth Support
Long-term valuation multiples must ultimately be supported by expansion in both revenue and per-share earnings. Over the past five years, the company achieved a compound annual revenue growth rate of 9.41%, while compound annual EPS growth over the same period was 0.49%. Comparing these two growth rates reveals whether the business is driving genuine operational expansion or if the market is simply paying more for flatlining earnings.
Supporting exhibit 5
Exhibit: DIS revenue history
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 9.41%.
DIS revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 9.41% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
Supporting exhibit 6
Exhibit: DIS EPS history
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 0.49%.
DIS EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
A five-year EPS CAGR of 0.49% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Margin Quality
Profit margins act as the essential link converting top-line revenue into tangible shareholder value. The company currently generates a net margin of 11.54% against its price-to-sales ratio of 1.80x. A higher sales multiple is far easier to sustain when profit margins are structurally sound and expanding; conversely, if margins are temporarily elevated, the valuation remains vulnerable to any future cost pressures.
Supporting exhibit 7
Exhibit: DIS net margin history
Net margin shows whether the company has enough profitability quality to support its valuation.
Latest net margin: 11.54%.
DIS net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin of 11.54% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Bull/Bear Valuation Case
The optimistic outlook for the equity relies on sustained revenue and EPS expansion alongside stable or improving profit margins to support the trailing multiple. Under this scenario, the positive margin of safety provides a comfortable cushion for investors. The pessimistic outlook highlights that if top-line growth decelerates or margins contract, the current P/E multiple of 15.78x will quickly look restrictive, eroding the calculated discount.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 9.41% and five-year EPS CAGR of 0.49% support the business case.
- Net margin of 11.54% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 15.78x can become demanding if EPS growth slows.
- The model margin of safety at 5.12% should change the valuation read if it deteriorates after refresh.
What Would Change The View
Several developments would require a reassessment of this valuation perspective. A significant divergence of the market price from the model fair value of $104 would alter the margin of safety, while any deterioration in the five-year EPS or revenue growth trends would weaken the operational support for the multiple. TGMCharts updates these fundamental inputs daily, ensuring the analytical framework adapts to incoming financial data.
Final Research Read
In conclusion, evaluating The Walt Disney Company requires a balanced view of its market multiples, model-derived fair value, historical growth, and margin profile. The current discount to fair value is supported by positive long-term growth, but the modest margin of safety demands consistent operational execution. This analysis is based on precomputed TGMCharts data and is intended for general research purposes rather than personalized financial advice.
Research trail
Continue through the source pages behind this research note.
FAQ
Is DIS fairly valued?
The Walt Disney Company trades at 15.78x trailing earnings with a model margin of safety of 5.12%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 9.41% and five-year EPS CAGR of 0.49%.
What valuation metric matters most for DIS?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this DIS valuation view refresh?
The article should refresh after the daily TGMCharts precompute job because the stored close, fair value, and claim ledger are dated to June 26, 2026.
Claim ledger
Every numeric or dated claim in this note was resolved from precomputed TGMCharts data before publishing.
Research snapshot
Extractable thesis
The Walt Disney Company does not get a one-metric verdict. The stock trades at 15.78x trailing earnings and the TGMCharts fair-value model is $104, so the valuation read depends on whether growth and margins support that price.
Data snapshot: 2026-06-26 / byline: TGMCharts Research / article status: published