Disney Beta vs. Current Ratio
DIS Stock | USD 120.98 1.05 0.88% |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.11 | 0.12 |
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Net Profit Margin | 0.0289 | 0.0305 |
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Operating Profit Margin | 0.0417 | 0.0439 |
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Pretax Profit Margin | 0.0586 | 0.0617 |
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Return On Assets | 0.0125 | 0.0132 |
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Return On Equity | 0.0259 | 0.0273 |
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For Disney profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Disney to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Walt Disney utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Disney's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Walt Disney over time as well as its relative position and ranking within its peers.
Disney |
Is Disney's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Disney. If investors know Disney will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Disney listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.486 | Dividend Share 0.3 | Earnings Share 1.63 | Revenue Per Share 48.605 | Quarterly Revenue Growth 0.002 |
The market value of Walt Disney is measured differently than its book value, which is the value of Disney that is recorded on the company's balance sheet. Investors also form their own opinion of Disney's value that differs from its market value or its book value, called intrinsic value, which is Disney's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Disney's market value can be influenced by many factors that don't directly affect Disney's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Disney's value and its price as these two are different measures arrived at by different means. Investors typically determine if Disney is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Disney's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Walt Disney Current Ratio vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Disney's current stock value. Our valuation model uses many indicators to compare Disney value to that of its competitors to determine the firm's financial worth. Walt Disney is rated # 3 in beta category among related companies. It is rated # 5 in current ratio category among related companies fabricating about 0.71 of Current Ratio per Beta. The ratio of Beta to Current Ratio for Walt Disney is roughly 1.41 . At this time, Disney's Current Ratio is comparatively stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Disney by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Disney's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Disney's earnings, one of the primary drivers of an investment's value.Disney Current Ratio vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Disney |
| = | 1.41 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Disney |
| = | 1.00 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Disney Current Ratio Comparison
Disney is currently under evaluation in current ratio category among related companies.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Disney will likely underperform.
Disney Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Disney, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Disney will eventually generate negative long term returns. The profitability progress is the general direction of Disney's change in net profit over the period of time. It can combine multiple indicators of Disney, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last Reported | Projected for 2024 | ||
Accumulated Other Comprehensive Income | -3 B | -3.1 B | |
Operating Income | 3.9 B | 5.8 B | |
Income Before Tax | 5.5 B | 5.4 B | |
Total Other Income Expense Net | -2.7 B | -2.6 B | |
Net Income | 3.9 B | 4 B | |
Income Tax Expense | 1.6 B | 1.8 B | |
Net Income Applicable To Common Shares | 2.7 B | 4.9 B | |
Net Income From Continuing Ops | 3.1 B | 5.4 B | |
Interest Income | 384.3 M | 399.8 M | |
Net Interest Income | -1.1 B | -1.1 B | |
Non Operating Income Net Other | 865.8 M | 1.1 B | |
Change To Netincome | 1.8 B | 1.9 B | |
Net Income Per E B T | 0.44 | 0.46 |
Disney Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Disney. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Disney position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Disney's important profitability drivers and their relationship over time.
Use Disney in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Disney position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Disney will appreciate offsetting losses from the drop in the long position's value.Disney Pair Trading
Walt Disney Pair Trading Analysis
The ability to find closely correlated positions to Disney could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Disney when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Disney - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Walt Disney to buy it.
The correlation of Disney is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Disney moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Walt Disney moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Disney can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Disney position
In addition to having Disney in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Junk Bonds Funds Thematic Idea Now
Junk Bonds Funds
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Junk Bonds Funds Theme or any other thematic opportunities.
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Check out Investing Opportunities. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Complementary Tools for Disney Stock analysis
When running Disney's price analysis, check to measure Disney's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Disney is operating at the current time. Most of Disney's value examination focuses on studying past and present price action to predict the probability of Disney's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Disney's price. Additionally, you may evaluate how the addition of Disney to your portfolios can decrease your overall portfolio volatility.
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To fully project Disney's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Walt Disney at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Disney's income statement, its balance sheet, and the statement of cash flows.