DISNEY$$S NUMBERS

Use the following information on Disney to answer the case

questions.

$$ Disney$$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.

$$ The company$$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 $6\mathrm{.}9\%.$

What is Disney stock$$s intrinsic value using each of the four models?

$$ Multi$-$Stage Growth Model

$$ Market Multiples Approach