Research on the Investment Value of Disney Based on Multiples Valuation

Abstract

This paper aims to estimate whether Disney’s stock price and enterprise value is over-valued or under-valued by using the multiples valuation method from the aspect of corporate finance and stock market combing with the financial analysis of Disney, strategy introduction, and competitor analysis. The main findings of this paper include that Disney’s stock price and enterprise value are fair. Based on these findings, the paper gives some explanations to illustrate this outcome: the first is of Disney’s prestigious films and characters. And the second is because Disney’s competitors in different have different statue in their own field, which might influence the calculation and outcome. And lastly is the most important, is since people love Disney which bring people imagination, fantasy and happiness. The value of this paper is that the findings can not only help the public learn more about Disney’s development situation but also offer the public another perspective and general method to analyze companies’ value and stock price.