Highly Regarded

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

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

34% Discount TTM fundamentals · sector averages from covered peers

DIS trades at 15.8× TTM earnings — a 34% discount to its Communication Services sector average of 24.1× in our coverage.

The Numbers

P/E (TTM)

15.8×

Sector avg: 24.1×

P/S (TTM)

2.0×

Sector avg: 6.6×

Market Cap

$190.53B

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 $107.55 15.8×
GOOGL $339.32 31.4×
META $572.18 24.4×
NFLX $81.04 32.0×
T $25.89 8.5×

Is the Discount Justified?

August 30, 2026

The Walt Disney Company trades at a P/E of 15.9x, a discount to the communication services sector average of 22.7x. This valuation likely reflects ongoing market considerations regarding Disney's significant investments and strategic shifts in its direct-to-consumer streaming segment. While the company possesses a robust portfolio of intellectual property and strong theme park assets, the market may be factoring in the competitive landscape of the media and entertainment industry and the path to sustained profitability in streaming. The broader communication services sector includes companies with diverse growth profiles, some of which may be experiencing higher growth rates in digital advertising or cloud-based services, contributing to a higher sector average. Disney's current multiple suggests a more cautious market outlook on its near-term growth and profitability compared to its peers.

Sources

Frequently Asked Questions

Is DIS overvalued or undervalued?
On trailing-twelve-month earnings, DIS trades at 15.8x versus a Communication Services sector average of 24.1x in our coverage — a 34.3% 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

GOOGL NFLX META VZ T