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DISThe Walt Disney Company
$103.49$179.7B
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  4. Financial Ratios

The Walt Disney Company (DIS) Financial Ratios

Latest Ratios: P/E Ratio 15.1x · EV/EBITDA 11.5x · ROE 11.3%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

DIS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$179.7B$205.5B$175.8B$148.3B$172.3B$321.7B$221.6B$217.1B$176.2B$155.5B$152.2B
Enterprise Value$219.4B$245.2B$219.3B$184.8B$213.0B$364.1B$266.0B$258.7B$193.0B$176.8B$167.8B
P/E Ratio →15.1116.5635.3062.8354.84161.48—19.6313.9917.3216.21
P/S Ratio1.902.181.921.672.084.773.393.122.972.822.74
P/B Ratio1.641.791.671.311.593.152.272.113.273.373.22
P/FCF17.8320.3920.5430.29161.52161.7661.62125.5017.9317.8418.03
P/OCF9.9311.3512.5815.0328.6857.8029.0932.8712.3312.6011.52

P/E links to full P/E history page with 30-year chart

DIS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.602.402.082.575.404.073.723.253.213.02
EV / EBITDA11.4512.8012.9712.8717.8541.5229.1016.1710.8110.629.94
EV / EBIT15.8617.7522.7527.4131.1791.78—17.3612.6112.3711.02
EV / FCF—24.3325.6237.74199.61183.0673.96149.5119.6320.2819.88

DIS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin37.8%37.8%35.8%33.4%34.2%33.1%32.9%39.6%44.9%45.0%46.1%
Operating Margin14.6%14.6%13.0%10.1%8.2%5.4%5.8%17.0%25.0%25.2%25.8%
Net Profit Margin13.1%13.1%5.4%2.6%3.8%3.0%-4.4%15.9%21.2%16.3%16.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE11.3%11.3%4.6%2.1%3.0%2.0%-2.9%14.1%25.2%19.2%19.6%
ROA6.3%6.3%2.5%1.2%1.5%1.0%-1.4%7.6%13.0%9.6%10.4%
ROIC6.8%6.8%6.0%4.5%3.5%1.9%2.0%8.2%16.1%16.0%17.3%
ROCE8.5%8.5%7.1%5.2%3.9%2.1%2.2%9.7%18.9%18.3%19.5%

DIS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.400.400.470.450.480.570.640.460.390.550.43
Debt / EBITDA2.372.372.933.534.386.656.822.941.171.521.19
Net Debt / Equity—0.350.410.320.370.410.460.400.310.460.33
Net Debt / EBITDA2.072.072.572.543.414.834.862.600.941.280.92
Debt / FCF—3.945.087.4538.0921.2912.3524.011.702.441.84
Interest Coverage7.627.626.664.624.412.57-0.1511.9621.6828.2043.00

DIS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.710.710.731.051.001.081.320.890.940.811.01
Quick Ratio0.650.650.670.990.941.041.260.840.860.740.92
Cash Ratio0.170.170.170.460.400.510.670.170.230.210.27
Asset Turnover—0.480.470.430.410.330.320.360.600.580.60
Inventory Turnover27.5427.5429.0330.1631.2333.9127.7225.5123.5122.0721.58
Days Sales Outstanding—51.0950.8550.6255.8372.3770.9481.1857.3257.1559.48

DIS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.0%0.9%0.8%———0.7%1.3%1.4%1.6%1.5%
Payout Ratio14.5%14.5%27.5%————26.2%20.0%27.2%24.6%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield6.6%6.0%2.8%1.6%1.8%0.6%—5.1%7.1%5.8%6.2%
FCF Yield5.6%4.9%4.9%3.3%0.6%0.6%1.6%0.8%5.6%5.6%5.5%
Buyback Yield1.9%1.7%1.7%0.0%0.0%0.0%0.0%0.1%2.0%6.0%4.9%
Total Shareholder Yield2.9%2.6%2.5%0.0%0.0%0.0%0.7%1.5%3.5%7.6%6.4%
Shares Outstanding—$1.8B$1.8B$1.8B$1.8B$1.8B$1.8B$1.7B$1.5B$1.6B$1.6B

Key Metrics

Growth RegimeStable
ProfitabilityStable
Balance SheetAdequate
Cash FlowStable
Top Statement Risk

Linear TV decline and parks cyclicality

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Margin Expansion Signals Mix Shift

Gross margin improved to 40.2% in Q3 2026 from 35.8% in Q2 2024, while operating margin reached 22.0%, per reported figures, indicating a favorable mix shift toward higher-margin streams.

The sequential improvement in gross margin from 36.8% in Q2 2026 to 40.2% in Q3 2026, alongside operating margin jumping from 15.1% to 22.0%, suggests that Disney is realizing operating leverage as streaming losses narrow and parks pricing holds. Net margin of 10.4% in Q3 2026, though below the 22.2% in Q3 2025 (which included a one-time gain), reflects a more sustainable earnings base. Investors should monitor whether this margin expansion is durable or partly driven by timing of content amortization and intersegment eliminations.

ROIC Recovery Still Below Historical Peaks

ROIC rose to 2.6% in Q3 2026 from 1.5% in Q2 2024, per financial statements, but remains modest relative to Disney's cost of capital, suggesting returns are recovering but not yet compounding strongly.

The improvement in ROIC from 1.3% in Q4 2025 to 2.6% in Q3 2026 is driven by margin expansion rather than asset efficiency, as asset turnover has remained flat at 0.12. ROE also improved to 2.3% from 0.4% in Q4 2024, but the absolute levels are low, reflecting the heavy capital base from parks and content investments. This suggests that while profitability is recovering, Disney has not yet demonstrated a return to the high-return compounding seen in prior decades, and the market may be pricing in a gradual improvement.

Negative CCC Reflects Supplier Leverage

Disney's cash conversion cycle improved to -54 days in Q3 2026 from -53 days in Q2 2024, per reported data, driven by extended payables (DPO of 119 days) and efficient inventory management.

The consistently negative CCC, ranging from -36 to -67 days over the past ten quarters, indicates that Disney is effectively using supplier financing to fund its working capital needs, a structural advantage given its scale. DSO has remained stable around 50-54 days, while DPO has expanded from 119 to 119 days, suggesting no deterioration in customer collections. This efficiency is a positive signal for cash generation, though investors should note that the negative CCC is partly a function of the parks' prepaid ticket model and deferred revenue, which may not be fully captured in the ratio.

Leverage Eases as Coverage Strengthens

Debt-to-EBITDA improved to 6.61x in Q3 2026 from 11.23x in Q4 2024, while interest coverage rose to 24.05x from 2.93x, per reported figures, indicating a more comfortable debt service position.

The sharp improvement in D/EBITDA from 11.23x in Q4 2024 to 6.61x in Q3 2026 reflects both debt reduction and EBITDA growth, with total debt declining to $46.0B. Interest coverage of 24.05x in Q3 2026 is a substantial improvement from 2.31x in Q2 2024, suggesting that Disney's earnings are now more than sufficient to cover interest expense. However, the D/E ratio of 0.39 remains conservative, and the company's ability to maintain this trajectory depends on sustained EBITDA growth, particularly as linear TV declines.

Liquidity Tight but Manageable

Current ratio of 0.71 in Q3 2026, per balance sheet data, remains below 1.0, but with stable cash around $5-6B and strong operating cash flow, liquidity appears adequate for near-term obligations.

The current ratio has hovered between 0.65 and 0.75 over the past ten quarters, indicating that current liabilities exceed current assets, a common feature for companies with strong cash conversion cycles and access to credit. Quick ratio of 0.65 suggests limited reliance on inventory, which is minimal for Disney. While the sub-1 current ratio might raise concerns, the negative CCC and robust operating cash flow (OCF/NI averaged above 1.0) mitigate liquidity risk. Investors should monitor any deterioration in cash flow or access to credit markets, but current levels appear manageable.

Misapplied ROIC in Capital-Intensive Model

ROIC is often misapplied to Disney because it understates returns on content and park investments, which generate multi-decade cash flows; adjusted ROIC including content assets may better reflect true earning power.

Standard ROIC calculations exclude content assets and capitalize only tangible capital, which penalizes Disney's heavy investment in film and TV production that yields long-term monetization across parks, merchandise, and streaming. As a result, reported ROIC of 2.6% in Q3 2026 appears artificially low compared to the company's actual cash generation. Analysts should consider an adjusted ROIC that includes content assets and accounts for the full revenue flywheel, or use cash flow return on investment (CFROI) to better capture Disney's economic returns. This adjustment is critical when comparing Disney to pure-play streaming or park operators.

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DIS — Frequently Asked Questions

Quick answers to the most common questions about buying DIS stock.

What is The Walt Disney Company's P/E ratio?

The Walt Disney Company's current P/E ratio is 15.1x. The historical average is 35.2x. This places it at the 11th percentile of its historical range.

What is The Walt Disney Company's EV/EBITDA?

The Walt Disney Company's current EV/EBITDA is 11.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.8x.

What is The Walt Disney Company's ROE?

The Walt Disney Company's return on equity (ROE) is 11.3%. The historical average is 10.0%.

Is DIS stock overvalued?

Based on historical data, The Walt Disney Company is trading at a P/E of 15.1x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is The Walt Disney Company's dividend yield?

The Walt Disney Company's current dividend yield is 0.96% with a payout ratio of 14.5%.

What are The Walt Disney Company's profit margins?

The Walt Disney Company has 37.8% gross margin and 14.6% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does The Walt Disney Company have?

The Walt Disney Company's Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.