To recap, Disney is a diversified worldwide entertainment company. It operates two main segments, the first being Disney Media and Entertainment Distribution (DMED) which covers linear networks, cable channels and direct-to-consumer streaming services. The second segment is Disney Parks, Experiences and Products (DPEP) which consists of theme parks and resorts and consumer products such as branded merchandise through retail, online and wholesale businesses.
The Walt Disney Co: -15.1%
Usually, companies that miss earnings estimates in volatile market conditions would see adverse near-term movements in their share price. This was what happened to The Walt Disney Co, which also explained its underperformance of losing 15.1% against the benchmarks Nasdaq and S&P 500 which gained 20.6% and 10.5% respectively. Disney currently trades at US$91.32 ($122.53) and we think this stock is undervalued. The intrinsic value of the company based on our updated in-house valuations is roughly 35% above its current price.
