Highly Regarded

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

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

35% Discount TTM fundamentals · sector averages from covered peers

DIS trades at 16.3× TTM earnings — a 35% discount to its Communication Services sector average of 25.0× in our coverage.

The Numbers

P/E (TTM)

16.3×

Sector avg: 25.0×

P/S (TTM)

2.0×

Sector avg: 7.0×

Market Cap

$196.04B

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 $110.66 16.3×
GOOGL $349.17 32.3×
META $736.55 31.4×
NFLX $72.61 28.7×
T $23.50 7.7×

Is the Discount Justified?

October 11, 2026

The Walt Disney Company's P/E of 15.9x is at a discount to the communication services sector average of 22.8x, reflecting ongoing transitions and mixed segment performance. The company's third-quarter profit surpassed estimates, primarily driven by strong performances in its theme parks and streaming businesses. Notably, its streaming services have transitioned from a loss to profitability and are now focused on global expansion. However, challenges persist in its linear television networks, which saw a 21% drop in operating income and a 16% decline in revenue in the fourth quarter of 2025. Weaker movie distribution results in the same period also contributed to a mixed picture. While domestic theme parks show resilience, softer demand was noted in its Shanghai and Hong Kong parks. The company's streaming strategy continues to be a key focus for investors.

Sources

Frequently Asked Questions

Is DIS overvalued or undervalued?
On trailing-twelve-month earnings, DIS trades at 16.3x versus a Communication Services sector average of 25.0x in our coverage — a 35% 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.

Keep Digging on DIS

The Walt Disney Company Overview

Price, chart, analysis & financials

DIS: Overbought or Oversold?

Updated daily

DIS: Why Is It Moving?

Updated daily

DIS: Price Prediction

Updated daily

Same question, Communication Services peers

VZ META NFLX T GOOGL