Published on 9 Oct 2021 on Simply Wall St. via Yahoo Finance
This article was originally published on Simply Wall St News
The Walt Disney Company ( NYSE:DIS ) has grown an amazing 41% in the last 12 months, mostly on the rise of the streaming business with Disney+ subscriptions. Today, we are going to see if the stock has matured its potential by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this.
We generally believe that a company's value is the present value of all the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model .