A Financial Analysis and Valuation on Disney

Xindi Zhao

doi:10.54254/2754-1169/95/2024MUR0052

Research Article

Open access

Published on 27 June 2024

Download pdf

Zhao,X. (2024). A Financial Analysis and Valuation on Disney. Advances in Economics, Management and Political Sciences,95,77-84.

Export citation

A Financial Analysis and Valuation on Disney

Xindi Zhao *^,1,

¹ Surrey International Institute, Dongbei University of Finance and Economics, Dalian, 116025, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/95/2024MUR0052

Abstract

This paper focuses on a specific analysis of the corresponding situation of Disney. It introduces the development of Disney as a whole and lists three companies in different industries in the market that compete with Disney in different aspects, namely Netflix, Comcast and Mattel. By collecting and analyzing the corresponding data, the four companies are specifically compared in terms of liquidity, repayment ability and profitability respectively. The result is that Disney's profitability is slightly weaker than that of the other three companies, which may be due to the fact that Disney has a large investment in streaming media, but not resulting in a return that matches it. This paper also analyses Disney's stock market performance in relation to its competitors and shows that although Disney stock is overvalued at this stage, the NTM P/E ratios show that it will improve in the next period. This paper also analyses and summarizes Disney's strategy and risk profile and makes some predictions for the future. This paper believes that in the future Disney will have a better growth and also a better experience for the consumers.

Keywords

Valuation, Performance Evaluation, Entertainment Industry, Disney

View pdf

References

[1]. Zhu, W. (2024). Decoding Disney’s Marketing Mastery: A Strategic Analysis. In SHS Web of Conferences (Vol. 188, p. 03011). EDP Sciences.

[2]. Britannica. (2023). The Editors of Encyclopaedia. "Disney Company summary". https://www.britannica.com/summary/Disney-Company. Accessed 18 April 2024.

[3]. Boellstorff, T., & Soderman, B. (2023). Toys, Video Games, Platforms, and Mattel Electronics’s Intellivision, The University of California, Irvine.

[4]. Lee, W. (2024). How Netflix won the streaming wars. Los Angeles Times. https://www.latimes.com/entertainment-arts/business/story/2024-03-06/how-netflix-held-onto-its-crown-as-king-of-streaming. Accessed 18 April 2024.

[5]. Zhao, X. (2020). Content and Marketing Strategies of Media Integration: A Case Study of Disney Group. Young Journalist (25), 60-61.

[6]. Yan, H. (2020). The Path to Successful Industrial Operation of Disney. Media (15), 48-50.

[7]. Rukstad, M. G., Collis, D. J., & Levine, T. (2001). The Walt Disney Company: The Entertainment King. Harvard Business School.

[8]. Li, Y. Q., & Hao, C. (2022). A Brief Discussion on the Expansion Motivation and Site Selection Characteristics of Disney Parks. Commercial Exhibition Economy (14), 41-43.

[9]. Zhang, J. Z. (2021). Turning to Streaming Media: Disney's Digital Transformation and Innovation. China Television (07), 101-104.

[10]. Walt Disney Company. (2023). Fiscal Year 2023 Annual Financial Report. Retrieved from https://www.thewaltdisneycompany.com/2023-Annual-Report. Accessed 18 April 2024.

Cite this article

Zhao,X. (2024). A Financial Analysis and Valuation on Disney. Advances in Economics, Management and Political Sciences,95,77-84.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2nd International Conference on Management Research and Economic Development

Conference website: https://www.icmred.org/

ISBN：978-1-83558-499-6(Print) / 978-1-83558-500-9(Online)

Conference date: 30 May 2024

Editor：Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.95

ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).