Valuation of the Walt Disney Company and the Influence of Disney Plus' Perception in Social Media on its Future Subscriber Growth

Abstract

The Walt Disney Company has repositioned its conglomerate with the realignment of its business units, the composition of the new business segment “Direct-to-Consumer &International”, and the acquisition of 21stCentury Fox. In the followingreport,the impact of these drastic changes on The Walt DisneyCompany areanalyzedfor valuation purposes.The DCF valuation is basedon a sum-of-the-partsapproach to determine the company’s fair value. According to the following analysis,the company is undervalued compared to its stock price as of 31 December2019. The total expected return to shareholders is 17.6% including 1.3% dividend yield.