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The Walt Disney Co (NYSE:DIS) Owner Earnings per Share (TTM)

: 2.97 (As of Sep. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

The Walt Disney Co's Owner Earnings per Share (TTM) ended in Sep. 2022 was $2.97. It's Price-to-Owner-Earnings ratio for today is 33.08.


The historical rank and industry rank for The Walt Disney Co's Owner Earnings per Share (TTM) or its related term are showing as below:

DIS' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 11.95   Med: 22.11   Max: 885.88
Current: 33.02


During the past 13 years, the highest Price-to-Owner-Earnings ratio of The Walt Disney Co was 885.88. The lowest was 11.95. And the median was 22.11.


DIS's Price-to-Owner-Earnings is ranked worse than
78.82% of 439 companies
in the Media - Diversified industry
Industry Median: 12.48 vs DIS: 33.02

The Walt Disney Co's Earnings per Share (Diluted) for the three months ended in Sep. 2022 was $0.09. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 was $1.72. It's PE Ratio ratio for today is 57.13.

The Walt Disney Co's EPS without NRI for the three months ended in Sep. 2022 was $0.09. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2022 was $1.75. It's PE Ratio without NRI ratio for today is 56.15.


The Walt Disney Co (NYSE:DIS) Owner Earnings per Share (TTM) Historical Data

The historical data trend for The Walt Disney Co's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Walt Disney Co Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.72 3.41 -1.13 2.63 2.97

The Walt Disney Co Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.63 2.15 2.22 2.64 2.97

The Walt Disney Co (NYSE:DIS) Owner Earnings per Share (TTM) Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

The Walt Disney Co (NYSE:DIS) Owner Earnings per Share (TTM) Distribution

For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where The Walt Disney Co's Owner Earnings per Share (TTM) falls into.



The Walt Disney Co Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

The Walt Disney Co's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 3,145
Depreciation, Depletion and Amortization 5,163
Change In Deferred Tax 200
5Y Average of Maintenance Capital Expenditure 3,582
Change In Working Capital 488
Shares Outstanding (Diluted Average) 1,827

1. Start with "Net Income" from income statement. The Walt Disney Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was $3,145 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. The Walt Disney Co's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2022 was $5,163 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. The Walt Disney Co's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2022 was $200 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $3,582 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

The Walt Disney Co's 5-Year Average Maintenance Capital Expenditure = $3,582 Mil

5. "Change In Working Capital" is from cashflow statement. The Walt Disney Co's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2022 was $488 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. The Walt Disney Co's Shares Outstanding (Diluted Average) for the months ended in Sep. 2022 was 1827.000 Mil.

The Walt Disney Co's Onwer Earnings Per Share for Sep. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 3145 +5163+200
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-3581.8588978023+488)/1827.000
=2.97

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=98.26/2.97
=33.08

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


The Walt Disney Co Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of The Walt Disney Co's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


The Walt Disney Co (NYSE:DIS) Business Description

The Walt Disney Co logo
Address
500 South Buena Vista Street, Burbank, CA, USA, 91521
Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney recently reorganized into four segments with one new segment: direct-to-consumer and international. The new segment includes the two announced OTT offerings, ESPN+ and the Disney SVOD service. The plan also combines two segments, parks and resorts and consumer products, into one. The media networks group contains the U.S. cable channels and ABC. The studio segment holds the movie production assets.
Executives
Gutierrez Horacio E officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Morrell Geoff officer: SEVP Chf Corp Affairs Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Richardson Paul J officer: Sr. EVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Chang Amy director 2100 SEAPORT BLVD. C/O INFORMATICA CORPORATION REDWOOD CITY CA 94063
Mcdonald Calvin director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Chapek Robert A officer: Chief Executive Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Catz Safra director C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Arnold Susan E director THE PROCTER & GAMBLE COMPANY 1 PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Lagomasino Maria Elena director 345 PARK AVENUE 5TH FL NEW YORK NY 10154
Parker Mark G director ONE BOWERMAN DR BEAVERTON OR 97005
Barra Mary T director 300 RENAISSANCE CENTER M/C: 482-C25-A36 DETROIT MI 48265-3000
Froman Michael B. G. director 2000 PURCHASE STREET PURCHASE NY 10577
Braverman Alan N officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA ST BURBANK CA 91521-1030
Mccarthy Christine M officer: SEVP-Chief Financial Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521-0964
Parker Mary Jayne officer: SEVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET BURBANK CA 91521-0966

The Walt Disney Co (NYSE:DIS) Headlines

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