How Much Is Disney Worth?
The Walt Disney Company (DIS) is a large and diversified Global 500 entertainment and media enterprise headquartered in Burbank, California. The company’s vision is to “entertain, inform and inspire people around the globe through the power of unparalleled storytelling.”
In fact, the premier entertainment company operates businesses in many different industries. The most significant operations include media networks, parks, studio entertainment and direct-to-consumer productions.
About Walt Disney Company
Walt Disney founded the company in 1923. Interestingly, he took some major financial risks in his career. Today, Disney boasts more than 200,000 employees.
|Walt Disney Company Snapshot|
|Founder||Walter Elias Disney|
Disney parks include many well-known theme parks, resorts, cruise lines and other experiences around the world. Some of the most popular include:
- Walt Disney World Resort in Florida
- Disneyland Resort in California
- Disneyland Paris
- Disney Cruise Lines
The Studios business produces live-action and animated films for the following:
- Walt Disney Pictures
- Twentieth Century Studios
Disney licenses its intellectual property to merchandise manufacturers, publishers, retail stores and more. It also creates video games, magazines, books and other print pieces. Keep reading to see how much Disney is worth, including its market cap, significant operations and future outlook.
How Much Is Disney’s Net Worth?
According to Disney’s fiscal 2020 annual report, total revenues exceeded $65 billion. However, this was a 6% decrease from the previous year’s total of $69.6 billion. Net incomes put Disney at a loss of $2.8 billion, compared to a net gain of $11 billion the previous year. Here’s the company’s valuation measures trailing 12 months.
|Price To Sales (TTM)||5.81|
|Price To Book Value (TTM)||4.21|
|Total Enterprise Value To EBIT (TTM)||170.26|
|Total Enterprise Value to EBITDA (TTM)||52.81|
|Total Enterprise Value To Total Revenue (TTM)||6.73|
Disney Market Cap Range
Disney stock experienced a 52-week low of $79.07 per share. This low gave the company a market cap of $143.5 billion. However, the company’s stock exploded during the rest of the year and into 2021, leading to a recent high of $200.60 per share. This high gives Disney a market cap of over $350 billion, which is one way of determining the company’s worth.
|52-Week Price Range||$79.07 to $200.60|
|52-Week Market Cap Range||$143.5 billion to $353 billion|
What Is Market Capitalization?
A company’s market capitalization calculates the total market value of all outstanding stock at current market prices. Market cap is one way of estimating how much a company is worth. For example, a company with 10 million outstanding shares trading at $100 would have a market cap of $1 billion.
Companies are typically categorized in one of the following groups:
- Small cap: less than $2 billion
- Mid cap: $2 billion to $10 billion
- Large cap: greater than $10 billion
According to The Latest Reports, Disney’s Net Worth is $122.18 Billion.
You can calculate Disney’s net worth by subtracting its liabilities from its assets. According to the 2020 annual report, Disney’s balance sheet showed $201.55 billion in total assets. The same report stated that its long-term obligations were $79.37 billion. By this formula, Disney’s net worth is $122.18 billion.
The GOBankingRates net worth formula is a calculation of a company’s worth based on concrete, measurable figures like assets and revenue. It’s a more conservative valuation than most, taking into account only full-year profits and revenue from the past three years and the company’s assets and debts. By this GOBankingRates metric, Disney’s net worth is currently $114.84 billion.
|Total Assets||$201.55 billion|
|Long-Term Obligations||$79.37 billion|
|Net Worth||$122.18 billion|
|GOBankingRates’ Evaluation of Disney Net Worth||$114.84 billion|
Key Product Lines Contributing To Revenue
According to the latest annual report, Disney’s key product lines in 2020 included the following:
Disney’s Media Networks include Disney, ESPN, Freeform, FX, and National Geographic brands and networks. This business includes ABC brands for broadcast television and eight domestic television stations. Disney also owns a 50% stake in A+E Television Networks. Revenues come from affiliate fees, advertising and licensing fees for distribution.
Parks, Experiences and Products
Disney’s Parks, Experiences and Products business includes all of its theme parks and resorts. The company’s consumer products include licensing of trade names, characters and other intellectual property. In addition, Disney sells branded merchandise directly through retail, online and wholesale businesses. Revenues come from park admissions, merchandise, resorts and licensing deals.
Disney’s Studio Entertainment includes motion picture production for Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, Searchlight Pictures, and Blue Sky Studios banners. Disney has other businesses that provide for the development, production and licensing of live entertainment events. The company also produces and distributes music. Revenues come from theatrical distribution, home entertainment, TV distribution and licensing fees.
Direct-to-Consumer and International
Disney’s DTCI businesses include Disney+, ESPN+ and Hulu. Disney also has branded international television networks and other digital content platforms. Revenues come from subscription fees, advertising, affiliate fees and licensing fees.
Current Top Shareholders
According to Nasdaq, the largest institutional shareholders of Disney stock are:
- Vanguard Group Inc
- BlackRock Inc
- State Street Corp
How Does the Future Look for Disney?
2020 was a considerable challenge for many businesses. The COVID-19 pandemic had a significant adverse impact on Disney’s revenues — in particular, Disney’s Parks, Experiences and Products segment. Mandated closures and reduced operating capacities led to large drops in revenues. And because the situation is ongoing, it’s impossible to know the full extent of these adverse impacts on Disney’s future business.
However, the company has reorganized its media and entertainment businesses to focus on its direct-to-consumer strategy. Its recent launch of Disney+ means an entirely new revenue source. As the ongoing pandemic affects park closures and travel, Disney is betting on its streaming service to meet consumers’ entertainment needs.
Is Disney Worth the Money?
While assessing value is sometimes a personal opinion, Disney certainly has a track record of success. The company owns the rights to some of the most well-known characters and brands in the world. There’s a reason why Disney is #7 on the Forbes World’s Most Valuable Brands 2020 list.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
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- The Walt Disney Company. "Leadership, History, Corporate Social Responsibility."
- The Walt Disney Company. "2020 Annual Report."
- Forbes. "Walt Disney (DIS)."
- Nasdaq. "Walt Disney Company (The) Common Stock (DIS) Institutional Holdings."
- Forbes. "The 2020 World's Most Valuable Brands."