Disney Stock Analysis - is Disney's Stock a Good Buy Today? $DIS Stock Analysis

TL;DR

This video analyzes the different segments of Disney's business, discusses the impact of the coronavirus on their revenue, and provides a fair value for Disney stock.

Transcript

hi I'm Jimmy in this video we're gonna walk through the Walt Disney stock ticker symbol DIS our goal with this video is to better understand the basics of Disney's business and then see if we can come up with a fair value for Disney stock and whether it's worth buying or selling and hopefully we can use this information to improve our investment po... Read More

Key Insights

• 💖 Disney's business is divided into four segments: parks, media networks, studio entertainment, and direct-to-consumer.
• 💩 The parks segment is expected to be hit hard by the coronavirus pandemic.
• 🙈 Disney Plus, part of the direct-to-consumer segment, has seen strong growth since its launch in 2019.
• ☠️ The fair value of Disney stock, with a required rate of return of 7.5%, is estimated to be around $107 per share.
• ❓ Personal judgment and patience are crucial when deciding to buy Disney stock.
• 🦺 Applying a margin of safety can provide a greater buying opportunity.
• 🍂 The speaker personally believes in Disney's long-term prospects and bought shares when the stock price fell below $100.

Questions & Answers

Q: How have each of Disney's business segments been impacted by the coronavirus?

The parks segment has been severely affected due to closures and reduced tourism. Media networks have likely performed decently, while the direct-to-consumer segment has seen growth with the success of Disney Plus.

Q: What is the fair value of Disney stock according to the analysis?

With a required rate of return of 7.5%, the fair value of Disney stock is estimated to be around $107 per share.

Q: Is it recommended to buy Disney stock at the current price?

The speaker suggests that buying Disney stock below $107 could be a good opportunity, but personal judgment and patience are important. Applying a margin of safety could be beneficial.

Q: How has the coronavirus impacted the speaker's analysis and stock purchasing decisions?

The speaker acknowledges that the pandemic has affected Disney's business, but believes in its long-term potential for recovery. They bought shares below $100, but recognize that more patience and a larger margin of safety could have been beneficial.

Summary & Key Takeaways

• Disney's business is divided into four segments: parks, experiences, and products; media networks; studio entertainment; and direct-to-consumer (Disney Plus).

• The parks segment is expected to be heavily affected by the coronavirus pandemic, while the media networks and direct-to-consumer segments may fare better.

• The speaker personally believes in the long-term potential of Disney and bought shares when the stock price fell below $100.