Is The Walt Disney Co. overvalued or undervalued?

As of 14 November 2025, the valuation grade for The Walt Disney Co. has moved from fair to attractive, indicating a shift towards being undervalued. The company appears to be undervalued based on its valuation metrics, including a P/E ratio of 19, a PEG ratio of 0.40, and an EV to EBITDA ratio of 13.28. Comparatively, its peer, which has a P/E of 15.26 and an EV to EBITDA of 13.46, suggests that Disney is positioned favorably within its industry.
Despite recent underperformance, with a year-to-date return of -4.98% compared to the S&P 500's 14.49%, the long-term outlook remains positive, as evidenced by a 3-year return of 12.22% against the S&P 500's 70.17%. This performance, alongside the attractive valuation ratios, reinforces the conclusion that The Walt Disney Co. is currently undervalued.