Should you buy Disney stock? (November 2023)

Disney stock analysis. Ticker: DIS I've started something new: https://www.3minutebreakdowns.com Disney reported earnings last week and the stock jumped by 7%. At the current share price, the company has a market value of 164 billion dollars. With 17 billion of cash and investments and 46 billion of long term debt, the enterprise value is 194 billion. Disney revenue over the last 12 months is 89 billion with 8 billion of adjusted net income and 5 billion of free cash flow. Based on those figures, Disney is valued at just over 2 times revenue, 24 times earnings and 40 times free cash flow. That doesn’t sound particularly cheap but there’s one thing to bear in mind. Disney’s streaming business is still growing and not yet turning a profit. When streaming turns profitable that will eventually provide a boost to Disney’s future earnings. And with 22 billion of streaming revenue this year, that boost could be significant. Assume a 3 times multiple to that 22 billion and you get 66 billion which would take Disney’s enterprise value down to just 128 billion. In other words, taking into account future profits from streaming, Disney is potentially valued at only 8 times EBITDA which is extremely cheap for a company like Disney. And Netflix, by comparison, is valued at 6 times revenue not 3. #stocks #investing #stockmarket #disneystock