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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
The Walt Disney Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.91. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for The Walt Disney Co's Degree of Operating Leverage or its related term are showing as below:
CHIX:WDPd's Degree of Operating Leverage is ranked worse than 67.07% of 987
companies
in the Media - Diversified industry
Industry Median: 0.9
vs CHIX:WDPd: 2.91
The Walt Disney Co (CHIX:WDPd) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
The Walt Disney Co Degree of Operating Leverage Related Terms
The Walt Disney Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for The Walt Disney Co's Degree of Operating Leverage 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.
The Walt Disney Co Degree of Operating Leverage Chart
CHIX:WDPD vs WBD, LYV, NFLX: Degree of Operating Leverage Comparison
For the Entertainment subindustry, The Walt Disney Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where The Walt Disney Co's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 2.91 mean?
The Walt Disney Co (CHIX:WDPD) has a Degree of Operating Leverage of 2.91 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for The Walt Disney Co and its competitors. According to the industry distribution chart, The Walt Disney Co ranks #662 out of 987 companies in the Media - Diversified industry, placing it in the top 67.1%.
Is The Walt Disney Co's Degree of Operating Leverage too high?
The Walt Disney Co's current Degree of Operating Leverage is 2.91. The Media - Diversified industry median Degree of Operating Leverage is 0.90. The Walt Disney Co's value of 2.91 is 223.3% above this industry median. Based on the distribution chart, The Walt Disney Co ranks #662 out of 987 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, The Walt Disney Co has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does The Walt Disney Co's Degree of Operating Leverage compare to WBD and LYV?
According to the Media - Diversified industry distribution chart, The Walt Disney Co ranks #662 out of 987 companies for Degree of Operating Leverage. This places The Walt Disney Co in the lower half of its industry. The industry median Degree of Operating Leverage is 0.90. The Walt Disney Co's value of 2.91 is 223.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Media - Diversified company?
The median Degree of Operating Leverage among Media - Diversified companies is 0.90, based on 987 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Walt Disney Co's current Degree of Operating Leverage of 2.91 is 223.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for The Walt Disney Co and its competitors. For the Media - Diversified industry, the median Degree of Operating Leverage is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Walt Disney Co's current Degree of Operating Leverage is 2.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Walt Disney Co stock overvalued right now?
The Walt Disney Co (CHIX:WDPD) has a current Degree of Operating Leverage of 2.91. The stock's GF Value™ is €90.10, compared to a current price of €86.45 — trading 4.1% below its estimated fair value. The current Degree of Operating Leverage is 2.91 and 223.3% above the Media - Diversified industry median of 0.90. The Walt Disney Co's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For The Walt Disney Co (CHIX:WDPD), the current Degree of Operating Leverage is 2.91 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Walt Disney Co (CHIX:WDPD) Overvalued in 2026?
Based on GuruFocus' analysis, The Walt Disney Co stock appears to be undervalued.
The current stock price of €86.45 is trading 4.1% below its estimated GF Value™ of €90.10.
Key valuation signals for CHIX:WDPD:
Degree of Operating Leverage: 2.91
GF Value™: €90.10 vs. price of €86.45 (4.1% below fair value)
Industry Position: 223.3% above the Media - Diversified median (#662 of 987)
No single metric tells the full story. See the CHIX:WDPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Disney operates in three global business segments: entertainment, sports, and experiences. Entertainment and experiences both benefit from the firm's ownership of iconic franchises and characters. Entertainment includes the ABC broadcast network, several cable television networks, and the Disney+ and Hulu streaming services. Within the segment, Disney also engages in movie and television production and distribution, with content licensed to movie theaters, other content providers, or, increasingly, kept in-house for use on Disney's own streaming platform and television networks. The sports segment houses the ESPN family of TV networks and streaming services. Experiences contains Disney's theme parks, cruises, and vacation destinations and also engages in merchandise licensing.
82GF Score
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