The Walt Disney Company (DIS) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: The Walt Disney Company

Updated on October 24, 2026 · accounts published on August 5, 2026

Reading of October 23, 2026: A profitable entertainment giant with recovering margins and slow growth

Walt Disney trades at a P/E of 23.2 over the last 12 months, 25 % above its sector median, with EPS up 152 % and 8 straight earnings beats.

• Is Walt Disney expensive or cheap? Walt Disney's P/E of 23.2 is 25 % above its sector median, and the stock traded at a lower P/E 55 % of the time over the past decade.
• How is the business doing? EPS jumped 152 % over the last 12 months on 3 % revenue growth, with a 16 % operating margin close to its decade average.
• How strong is the balance sheet? Net debt was 2.1× EBITDA in fiscal 2025, below the 3.0× ceiling for media, and equals about 21 % of the share price.
• What to expect from the next earnings? Walt Disney reports on November 17, 2026; analysts expect EPS of $1.69 after 8 beats in the last 8 quarters.
• Does the dividend fit within the cash the business generates? The dividend took just 18 % of fiscal 2025 free cash flow, far below the 80 % healthy ceiling for media companies.

Is Walt Disney expensive or cheap?

Over the last 12 months Walt Disney trades at a P/E of 23.2. That is 25 % above the 18.6 median of its sector and 7 % above its own ten-year median of 21.8. Over the decade the multiple ranged from 12.4 to 143.7, and it was lower than today 55 % of the time, which puts the stock in the middle of its history. EV/EBITDA tells a friendlier story: 10.1× over the last 12 months, about half its five-year average of 20.1×. The free cash flow yield of 3.6 % is thin. The shares are up 1 % in a year and sit 2 % below their 52-week high of $116.65.

How is the business doing?

Profits are recovering faster than sales. Over the last 12 months revenue grew 3 % while EPS rose 152 %, and the operating margin reached 16.0 %, up from 14.6 % in fiscal 2025 and close to the 16.6 % average of fiscal 2014-2025. Returns on capital remain modest: ROIC of 6.4 % beats the 5.7 % sector median by only 0.7 points, and it topped 10 % in just 3 of the last 10 fiscal years, with a low of 2.0 % in 2021. ROE stands at 7.9 % and the net margin at 8.7 %. Walt Disney earns its keep, though without the high returns of an exceptional business.

How strong is the balance sheet?

Debt is manageable. Net debt came to $23.03 per share in fiscal 2025, about 21 % of the current price, and 2.1× EBITDA, below the 3.0× considered tolerable for media and entertainment. Debt to equity over the last 12 months is 0.42. Two figures call for attention: a current ratio of 0.71 means short-term liabilities exceed short-term assets, and the Altman Z of 2.6 sits in the grey zone. A Piotroski score of 8 out of 9 points to improving fundamentals over the last 12 months. The dividend yields 1.3 %, with a payout of just 15 % of fiscal 2025 earnings.

What to expect from the next earnings?

The track record is clean: Walt Disney has beaten EPS estimates in each of the last 8 quarters. On August 5, 2026 it reported $2.06 per share against $1.86 expected, an 11 % surprise. For the quarter due on November 17, 2026, analysts expect $1.69. The longer view is stable: the 2027 EPS consensus barely moved in the last 30 days, from $7.50 to $7.51 across 17 analysts, and revenue estimates held steady. Of the 64 analysts covering the company, 40 rate it a buy, 20 a hold and 4 a sell.

Does the dividend fit within the cash the business generates?

Media companies need growth and discipline in content spending, so the sector is judged on cash conversion and investment rather than on the dividend alone. Walt Disney passes most tests for fiscal 2025: a payout of 17.9 % of free cash flow against a healthy ceiling of 80 %, capex at 8.5 % of revenue below the 12 % limit, and an EBITDA margin of 20.3 %, just above the 20 % threshold. The free cash flow yield of 5.0 % on the current price sits right at the 5 % line. Growth is the weak spot: revenue per share rose 4.9 % a year in fiscal 2022-2025, short of the 6 % considered healthy.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.