Is The Walt Disney Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Walt Disney Co. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting that the stock is not a bargain. The company appears to be overvalued based on key metrics such as a P/E ratio of 19, a Price to Book Value of 1.98, and an EV to EBITDA ratio of 13.28, which are higher than the peer comparison where the average P/E is 15.26 and EV to EBITDA is 13.46.
In comparison to its peers, The Walt Disney Co. has a PEG ratio of 0.40, which is relatively attractive, but the overall valuation still leans towards expensive. Recent stock performance shows that while Disney's one-year return of 14.64% slightly outpaced the S&P 500's 14.08%, its longer-term performance has lagged significantly, with a three-year return of 13.71% compared to the S&P 500's 81.19%. This suggests that despite some short-term gains, the stock may not provide sufficient value compared to broader market trends.