The 4 Top Value Drivers for Disney


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Disney ( DIS ) competes with other media conglomerates like Viacom (NYSE:VIA), News Corp (NASDAQ:NWS), CBS ( 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 advertising.

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 and advertisement.

See the top forecasts for Disney Channel, A&E & others

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks , US Markets
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