Intrinsic value of Walt Disney - DIS

Previous Close

$109.79

  Intrinsic Value

$214.46

stock screener

  Rating & Target

str. buy

+95%

Previous close

$109.79

 
Intrinsic value

$214.46

 
Up/down potential

+95%

 
Rating

str. buy

We calculate the intrinsic value of DIS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 163.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.00
  6.80
  6.62
  6.46
  6.31
  6.18
  6.06
  5.96
  5.86
  5.77
  5.70
  5.63
  5.56
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
  5.09
Revenue, $m
  58,997
  63,008
  67,180
  71,518
  76,032
  80,732
  85,627
  90,727
  96,044
  101,591
  107,379
  113,422
  119,733
  126,329
  133,223
  140,433
  147,975
  155,867
  164,129
  172,779
  181,838
  191,327
  201,271
  211,691
  222,613
  234,063
  246,069
  258,659
  271,862
  285,712
Variable operating expenses, $m
  8,522
  8,840
  9,171
  9,515
  9,873
  10,246
  10,634
  11,038
  11,460
  11,900
  8,517
  8,996
  9,497
  10,020
  10,567
  11,139
  11,737
  12,363
  13,018
  13,704
  14,423
  15,176
  15,964
  16,791
  17,657
  18,565
  19,518
  20,516
  21,563
  22,662
Fixed operating expenses, $m
  34,618
  35,380
  36,158
  36,954
  37,767
  38,597
  39,447
  40,314
  41,201
  42,108
  43,034
  43,981
  44,949
  45,937
  46,948
  47,981
  49,036
  50,115
  51,218
  52,345
  53,496
  54,673
  55,876
  57,105
  58,361
  59,645
  60,958
  62,299
  63,669
  65,070
Total operating expenses, $m
  43,140
  44,220
  45,329
  46,469
  47,640
  48,843
  50,081
  51,352
  52,661
  54,008
  51,551
  52,977
  54,446
  55,957
  57,515
  59,120
  60,773
  62,478
  64,236
  66,049
  67,919
  69,849
  71,840
  73,896
  76,018
  78,210
  80,476
  82,815
  85,232
  87,732
Operating income, $m
  15,857
  18,789
  21,851
  25,050
  28,393
  31,889
  35,546
  39,374
  43,383
  47,583
  55,828
  60,444
  65,288
  70,371
  75,708
  81,313
  87,202
  93,389
  99,893
  106,730
  113,919
  121,479
  129,431
  137,795
  146,595
  155,853
  165,594
  175,844
  186,630
  197,980
EBITDA, $m
  21,827
  24,904
  28,117
  31,472
  34,978
  38,644
  42,477
  46,490
  50,690
  55,090
  59,702
  64,536
  69,608
  74,929
  80,515
  86,380
  92,540
  99,013
  105,814
  112,963
  120,479
  128,381
  136,692
  145,432
  154,626
  164,297
  174,472
  185,176
  196,438
  208,288
Interest expense (income), $m
  466
  1,366
  1,571
  1,785
  2,008
  2,239
  2,480
  2,731
  2,992
  3,264
  3,547
  3,843
  4,152
  4,474
  4,811
  5,163
  5,531
  5,915
  6,318
  6,739
  7,179
  7,641
  8,124
  8,630
  9,161
  9,717
  10,299
  10,910
  11,550
  12,222
  12,926
Earnings before tax, $m
  14,491
  17,218
  20,066
  23,042
  26,154
  29,409
  32,815
  36,382
  40,119
  44,036
  51,984
  56,292
  60,814
  65,560
  70,545
  75,783
  81,286
  87,072
  93,154
  99,550
  106,278
  113,355
  120,800
  128,634
  136,878
  145,554
  154,684
  164,294
  174,408
  185,054
Tax expense, $m
  3,913
  4,649
  5,418
  6,221
  7,062
  7,940
  8,860
  9,823
  10,832
  11,890
  14,036
  15,199
  16,420
  17,701
  19,047
  20,461
  21,947
  23,509
  25,152
  26,879
  28,695
  30,606
  32,616
  34,731
  36,957
  39,299
  41,765
  44,359
  47,090
  49,964
Net income, $m
  10,579
  12,569
  14,648
  16,821
  19,092
  21,468
  23,955
  26,559
  29,287
  32,146
  37,949
  41,093
  44,394
  47,859
  51,498
  55,321
  59,339
  63,562
  68,002
  72,672
  77,583
  82,749
  88,184
  93,903
  99,921
  106,254
  112,919
  119,934
  127,318
  135,089

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  102,425
  109,390
  116,631
  124,163
  132,001
  140,159
  148,657
  157,512
  166,744
  176,373
  186,422
  196,913
  207,871
  219,321
  231,290
  243,807
  256,901
  270,603
  284,946
  299,963
  315,690
  332,166
  349,428
  367,519
  386,481
  406,360
  427,203
  449,060
  471,983
  496,027
Adjusted assets (=assets-cash), $m
  102,425
  109,390
  116,631
  124,163
  132,001
  140,159
  148,657
  157,512
  166,744
  176,373
  186,422
  196,913
  207,871
  219,321
  231,290
  243,807
  256,901
  270,603
  284,946
  299,963
  315,690
  332,166
  349,428
  367,519
  386,481
  406,360
  427,203
  449,060
  471,983
  496,027
Revenue / Adjusted assets
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
Average production assets, $m
  49,380
  52,738
  56,229
  59,861
  63,639
  67,573
  71,669
  75,938
  80,389
  85,032
  89,876
  94,934
  100,217
  105,737
  111,508
  117,542
  123,855
  130,461
  137,376
  144,616
  152,198
  160,141
  168,463
  177,185
  186,327
  195,911
  205,960
  216,497
  227,549
  239,141
Working capital, $m
  -1,652
  -1,764
  -1,881
  -2,003
  -2,129
  -2,260
  -2,398
  -2,540
  -2,689
  -2,845
  -3,007
  -3,176
  -3,353
  -3,537
  -3,730
  -3,932
  -4,143
  -4,364
  -4,596
  -4,838
  -5,091
  -5,357
  -5,636
  -5,927
  -6,233
  -6,554
  -6,890
  -7,242
  -7,612
  -8,000
Total debt, $m
  29,097
  33,060
  37,180
  41,466
  45,925
  50,568
  55,403
  60,441
  65,694
  71,173
  76,891
  82,860
  89,095
  95,611
  102,421
  109,543
  116,994
  124,790
  132,951
  141,496
  150,445
  159,819
  169,642
  179,935
  190,725
  202,036
  213,896
  226,332
  239,376
  253,056
Total liabilities, $m
  58,280
  62,243
  66,363
  70,649
  75,108
  79,751
  84,586
  89,624
  94,877
  100,356
  106,074
  112,043
  118,278
  124,794
  131,604
  138,726
  146,177
  153,973
  162,134
  170,679
  179,628
  189,002
  198,825
  209,118
  219,908
  231,219
  243,079
  255,515
  268,559
  282,239
Total equity, $m
  44,145
  47,147
  50,268
  53,514
  56,892
  60,409
  64,071
  67,888
  71,867
  76,017
  80,348
  84,869
  89,592
  94,527
  99,686
  105,081
  110,724
  116,630
  122,812
  129,284
  136,063
  143,163
  150,604
  158,401
  166,573
  175,141
  184,125
  193,545
  203,425
  213,788
Total liabilities and equity, $m
  102,425
  109,390
  116,631
  124,163
  132,000
  140,160
  148,657
  157,512
  166,744
  176,373
  186,422
  196,912
  207,870
  219,321
  231,290
  243,807
  256,901
  270,603
  284,946
  299,963
  315,691
  332,165
  349,429
  367,519
  386,481
  406,360
  427,204
  449,060
  471,984
  496,027
Debt-to-equity ratio
  0.660
  0.700
  0.740
  0.770
  0.810
  0.840
  0.860
  0.890
  0.910
  0.940
  0.960
  0.980
  0.990
  1.010
  1.030
  1.040
  1.060
  1.070
  1.080
  1.090
  1.110
  1.120
  1.130
  1.140
  1.140
  1.150
  1.160
  1.170
  1.180
  1.180
Adjusted equity ratio
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431
  0.431

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  10,579
  12,569
  14,648
  16,821
  19,092
  21,468
  23,955
  26,559
  29,287
  32,146
  37,949
  41,093
  44,394
  47,859
  51,498
  55,321
  59,339
  63,562
  68,002
  72,672
  77,583
  82,749
  88,184
  93,903
  99,921
  106,254
  112,919
  119,934
  127,318
  135,089
Depreciation, amort., depletion, $m
  5,971
  6,115
  6,266
  6,422
  6,585
  6,755
  6,931
  7,115
  7,307
  7,507
  3,874
  4,092
  4,320
  4,558
  4,806
  5,066
  5,339
  5,623
  5,921
  6,233
  6,560
  6,903
  7,261
  7,637
  8,031
  8,444
  8,878
  9,332
  9,808
  10,308
Funds from operations, $m
  16,549
  18,684
  20,914
  23,243
  25,677
  28,223
  30,887
  33,674
  36,594
  39,653
  41,823
  45,185
  48,714
  52,417
  56,305
  60,388
  64,678
  69,186
  73,924
  78,905
  84,143
  89,652
  95,446
  101,540
  107,952
  114,699
  121,797
  129,266
  137,126
  145,397
Change in working capital, $m
  -108
  -112
  -117
  -121
  -126
  -132
  -137
  -143
  -149
  -155
  -162
  -169
  -177
  -185
  -193
  -202
  -211
  -221
  -231
  -242
  -254
  -266
  -278
  -292
  -306
  -321
  -336
  -353
  -370
  -388
Cash from operations, $m
  16,657
  18,796
  21,030
  23,364
  25,804
  28,355
  31,024
  33,817
  36,743
  39,808
  41,985
  45,355
  48,890
  52,601
  56,498
  60,590
  64,889
  69,407
  74,155
  79,147
  84,397
  89,917
  95,724
  101,832
  108,258
  115,019
  122,133
  129,619
  137,496
  145,785
Maintenance CAPEX, $m
  -1,990
  -2,128
  -2,273
  -2,424
  -2,580
  -2,743
  -2,913
  -3,089
  -3,273
  -3,465
  -3,665
  -3,874
  -4,092
  -4,320
  -4,558
  -4,806
  -5,066
  -5,339
  -5,623
  -5,921
  -6,233
  -6,560
  -6,903
  -7,261
  -7,637
  -8,031
  -8,444
  -8,878
  -9,332
  -9,808
New CAPEX, $m
  -3,208
  -3,358
  -3,491
  -3,631
  -3,779
  -3,934
  -4,097
  -4,269
  -4,451
  -4,642
  -4,845
  -5,058
  -5,283
  -5,520
  -5,771
  -6,035
  -6,313
  -6,606
  -6,915
  -7,240
  -7,582
  -7,943
  -8,322
  -8,722
  -9,142
  -9,584
  -10,049
  -10,538
  -11,051
  -11,592
Cash from investing activities, $m
  -5,198
  -5,486
  -5,764
  -6,055
  -6,359
  -6,677
  -7,010
  -7,358
  -7,724
  -8,107
  -8,510
  -8,932
  -9,375
  -9,840
  -10,329
  -10,841
  -11,379
  -11,945
  -12,538
  -13,161
  -13,815
  -14,503
  -15,225
  -15,983
  -16,779
  -17,615
  -18,493
  -19,416
  -20,383
  -21,400
Free cash flow, $m
  11,459
  13,310
  15,266
  17,309
  19,445
  21,678
  24,014
  26,459
  29,019
  31,701
  33,475
  36,423
  39,515
  42,761
  46,169
  49,749
  53,510
  57,462
  61,617
  65,986
  70,581
  75,414
  80,499
  85,849
  91,479
  97,404
  103,640
  110,204
  117,112
  124,385
Issuance/(repayment) of debt, $m
  3,806
  3,963
  4,120
  4,286
  4,459
  4,642
  4,835
  5,038
  5,253
  5,479
  5,718
  5,969
  6,235
  6,515
  6,811
  7,122
  7,450
  7,796
  8,161
  8,545
  8,949
  9,374
  9,822
  10,294
  10,790
  11,311
  11,860
  12,437
  13,043
  13,681
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,806
  3,963
  4,120
  4,286
  4,459
  4,642
  4,835
  5,038
  5,253
  5,479
  5,718
  5,969
  6,235
  6,515
  6,811
  7,122
  7,450
  7,796
  8,161
  8,545
  8,949
  9,374
  9,822
  10,294
  10,790
  11,311
  11,860
  12,437
  13,043
  13,681
Total cash flow (excl. dividends), $m
  15,265
  17,273
  19,386
  21,595
  23,905
  26,321
  28,849
  31,497
  34,272
  37,180
  39,193
  42,392
  45,750
  49,276
  52,980
  56,871
  60,960
  65,258
  69,778
  74,531
  79,530
  84,789
  90,321
  96,143
  102,269
  108,715
  115,500
  122,640
  130,156
  138,066
Retained Cash Flow (-), $m
  -2,830
  -3,002
  -3,121
  -3,246
  -3,378
  -3,516
  -3,663
  -3,816
  -3,979
  -4,150
  -4,331
  -4,522
  -4,723
  -4,935
  -5,159
  -5,395
  -5,643
  -5,906
  -6,182
  -6,472
  -6,779
  -7,101
  -7,440
  -7,797
  -8,173
  -8,568
  -8,983
  -9,420
  -9,880
  -10,363
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  12,435
  14,271
  16,265
  18,349
  20,527
  22,804
  25,187
  27,681
  30,293
  33,030
  34,862
  37,871
  41,028
  44,341
  47,821
  51,476
  55,317
  59,353
  63,596
  68,058
  72,751
  77,688
  82,881
  88,346
  94,096
  100,147
  106,516
  113,220
  120,276
  127,703
Discount rate, %
  4.40
  4.62
  4.85
  5.09
  5.35
  5.62
  5.90
  6.19
  6.50
  6.83
  7.17
  7.53
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
PV of cash for distribution, $m
  11,911
  13,039
  14,111
  15,042
  15,819
  16,430
  16,866
  17,119
  17,186
  17,066
  16,281
  15,855
  15,265
  14,527
  13,661
  12,688
  11,635
  10,528
  9,395
  8,263
  7,158
  6,103
  5,117
  4,216
  3,411
  2,706
  2,104
  1,601
  1,191
  866
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

The Walt Disney Company is an entertainment company. The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. The media networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations. Under the Parks and Resorts segment, the Company's Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties. The studio entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. It also develops and publishes games, primarily for mobile platforms, books, magazines and comic books. The Company distributes merchandise directly through retail, online and wholesale businesses. Its cable networks consist of ESPN, the Disney Channels and Freeform.

FINANCIAL RATIOS  of  Walt Disney (DIS)

Valuation Ratios
P/E Ratio 18.3
Price to Sales 3
Price to Book 4
Price to Tangible Book
Price to Cash Flow 13.3
Price to Free Cash Flow 18.9
Growth Rates
Sales Growth Rate -0.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -24.1%
Cap. Spend. - 3 Yr. Gr. Rate 1.8%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 46.3%
Total Debt to Equity 61.2%
Interest Coverage 31
Management Effectiveness
Return On Assets 9.9%
Ret/ On Assets - 3 Yr. Avg. 10.2%
Return On Total Capital 13.8%
Ret/ On T. Cap. - 3 Yr. Avg. 14.2%
Return On Equity 21.2%
Return On Equity - 3 Yr. Avg. 20.5%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 45%
Gross Margin - 3 Yr. Avg. 45.7%
EBITDA Margin 30.9%
EBITDA Margin - 3 Yr. Avg. 31.5%
Operating Margin 25.1%
Oper. Margin - 3 Yr. Avg. 25.3%
Pre-Tax Margin 25%
Pre-Tax Margin - 3 Yr. Avg. 26.1%
Net Profit Margin 16.3%
Net Profit Margin - 3 Yr. Avg. 16.4%
Effective Tax Rate 32.1%
Eff/ Tax Rate - 3 Yr. Avg. 34.1%
Payout Ratio 27.2%

DIS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DIS stock intrinsic value calculation we used $55137 million for the last fiscal year's total revenue generated by Walt Disney. The default revenue input number comes from 0001 income statement of Walt Disney. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our DIS stock valuation model: a) initial revenue growth rate of 7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.4%, whose default value for DIS is calculated based on our internal credit rating of Walt Disney, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Walt Disney.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of DIS stock the variable cost ratio is equal to 14.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $33873 million in the base year in the intrinsic value calculation for DIS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Walt Disney.

Corporate tax rate of 27% is the nominal tax rate for Walt Disney. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the DIS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for DIS are equal to 83.7%.

Life of production assets of 23.2 years is the average useful life of capital assets used in Walt Disney operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for DIS is equal to -2.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $41315 million for Walt Disney - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1487.24 million for Walt Disney is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Walt Disney at the current share price and the inputted number of shares is $163.3 billion.

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