DISNEYS NUMBERS

Use the following information on Disney to answer the case questions. Disneys current stock price is $113.00 per share. The average growth rate of the companys dividend has been 16.09% from 2002 through 2017. Disneys return on equity is 19.5% and the company retains approximately 75.7% of its profits while paying out the remaining 24.3% in dividends. The companys stock currently trades at 16.27 times its current year earnings estimate of $6.96 per share. Analysts expect the company to earn $7.36 per share in 2019 and $8.24 in 2020. Disneys peers engaged in movie making trade at 19.6 times their current year earnings estimates while peers in parks and resorts trade at 19.2; media and broadcasting at 17.0 and consumer products at 19.1.

What is Disney stocks intrinsic value using the constant growth model?

What is Disney stocks intrinsic value using the multi-stage growth model?

What is Disney stocks intrinsic value using the dividend discount model?

What is Disney stocks intrinsic value using the market multiple method?

Reconcile Disney stocks intrinsic value, considering the strengths and weaknesses of each valuation approach.