) competes with other media conglomerates like Viacom (NYSE:VIA),
News Corp (NASDAQ:NWS), CBS (
) and Time Warner (NYSE:TWX) in the media and entertainment
business. The company's operations are diversified across a variety
of product lines. Below, we take a look at the relative value of
the company's top 4 value drivers.
We maintain a
price estimate of $44.83 for Disney,
implying a premium to market price.
1) ESPN - represents 28% of Disney's stock value
ESPN is the worldwide leader in sports programming and arguably
the most popular sports channel in the world. The channel is almost
indispensable to U.S. pay-TV households and has rights to a host of
major sporting events like NFL, NBA, and the FIFA World Cup. The
channel generates revenue via subscription fees and
See the top forecasts for ESPN
2) Disney Channel, A&E & Others - 21%
This business includes other channels owned by the company
(excluding ESPN) including the Disney Channel, A&E, History
Channel and Lifetime, which make money through both subscription
See the top forecasts for Disney Channel, A&E
3) Disney Studios - 19%
Disney produces and distributes movies through Walt Disney
Pictures, Touchstone Pictures, Hollywood Pictures, Pixar, Miramax,
and Hollywood banners. This business has three main revenue streams
including DVD sales, content licensing and box office sales.
See the top forecasts for Disney Studios
4) ABC Broadcasting - 12%
The ABC Television Network is one of the big four broadcasting
networks in the United States. It broadcasts programs during all
parts of the day and the majority of its revenue comes from selling
advertising slots. It also generates revenues through the licensing
of its productions.
See the top forecasts for ABC broadcasting
See our full analysis for Disney's stock here.