$$ Disney$$s current stock price is $$140\mathrm{.}00$ per share. The average growth rate of the company$$s dividend has been $17\mathrm{.}7\%$ from $2004$ through $2018$

$$ Disney$$s return on equity is $28\mathrm{.}0\%$ and the company retains approximately $80\mathrm{.}0\%$ of its profits while paying out the remaining $20\mathrm{.}0\%$ in dividends. Payout Ratio$=20\%$

$$ The company$$s stock currently trades at $21\mathrm{.}21$ times its current year earnings estimate of $$6\mathrm{.}60$ per share.

$$ Analysts expect the company to earn $$6\mathrm{.}19$ per share in $2020$ and $$6\mathrm{.}93$ in $2021.$

$$ Disney$$s peers in media networks trade at $25\mathrm{.}5$ times their current year earnings estimates while peers in parks, experiences and consumer products at $21\mathrm{.}9$; studio entertainment at $19\mathrm{.}1$ and DTCI at $14\mathrm{.}1.$

$$ Assume the expected return for Disney$$s stock is $6\mathrm{.}9\%.$

$1.$ Use the information Equity Analysis and Valuation for The Walt Disney Company $($Disney$)$ and assume the current year is $2019,$ calculate the intrinsic value of Disney stock using:

a$.$ Multi$-$Stage Growth Model

b$.$ Market Multiples Approach

$2.$ Based on the results calculated above:

a$.$ Reconcile Disney stock$$s intrinsic value and identify whether the stock was undervalued or overvalued.

b$.$ Recommend the most suitable valuation approach by discussing the advantages and disadvantages of each valuation approach.