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 its valuation outlook. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 19, which is significantly higher than the peer average of approximately 15.26, while the EV to EBITDA ratio of 13.28 also exceeds the peer benchmark of 13.46. Additionally, the PEG ratio of 0.40 suggests that the stock may not be priced favorably relative to its growth potential.
In comparison to its peers, The Walt Disney Co. is underperforming, particularly when considering the returns over the last three and five years, where it has returned 13.71% and -12.73%, respectively, compared to the S&P 500's returns of 81.19% and 91.29%. This underperformance reinforces the notion that the stock is overvalued given its current metrics and market conditions.