Is The Walt Disney Co. overvalued or undervalued?

Sep 20 2025 05:34 PM IST
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As of September 8, 2025, The Walt Disney Co. is considered overvalued with a P/E ratio of 19 compared to peers, a higher EV to EBITDA ratio, and a long-term performance decline of 10.71%, despite a recent one-year return of 22.74%.
As of 8 September 2025, the valuation grade for The Walt Disney Co. has moved from fair to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 19, an EV to EBITDA of 13.28, and a PEG ratio of 0.40, which suggests that the stock is priced higher relative to its earnings growth potential compared to its peers.
In comparison to its peers, The Walt Disney Co. has a P/E ratio of 19, while a notable peer has a P/E of 15.26, indicating a premium valuation. Additionally, the company's EV to EBITDA ratio is slightly above the peer average of 13.46. Despite a positive one-year return of 22.74%, which outperformed the S&P 500's 17.14%, the longer-term performance shows a decline of 10.71% over five years compared to the S&P's substantial 96.61% increase, reinforcing the notion that the stock may be overvalued at its current price.
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