ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The Walt Disney Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.68%.
As of today (2026-06-25), The Walt Disney Co's WACC % is 11.18%. The Walt Disney Co's ROIC % is 7.33% (calculated using TTM income statement data).
The Walt Disney Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The Walt Disney Co (LIM:DIS) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, The Walt Disney Co's WACC % is 11.18%. The Walt Disney Co's ROIC % is 7.33% (calculated using TTM income statement data).
The Walt Disney Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
The Walt Disney Co ROIC % Related Terms
The Walt Disney Co ROIC % Historical Data
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The historical data trend for The Walt Disney Co's ROIC % 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.
For the Entertainment subindustry, The Walt Disney Co's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's ROIC % distribution charts can be found below:
* The bar in red indicates where The Walt Disney Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (LIM:DIS) has a ROIC % of 5.68% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on The Walt Disney Co and its competitors.
Is The Walt Disney Co's ROIC % too high?
The Walt Disney Co's current ROIC % is 5.68%. The Media - Diversified industry median ROIC % is 1.41. The Walt Disney Co's value of 5.68% is 304.3% above this industry median. Overall, The Walt Disney Co has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Walt Disney Co's ROIC % compare to WBD and LYV?
The Walt Disney Co's ROIC % of 5.68% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.41. The Walt Disney Co's value of 5.68% is 304.3% 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 ROIC % for a Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.41, based on 1,016 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Walt Disney Co's current ROIC % of 5.68% is 304.3% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on The Walt Disney Co and its competitors. For the Media - Diversified industry, the median ROIC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Walt Disney Co's current ROIC % is 5.68%. 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?
Based on GuruFocus' analysis, The Walt Disney Co (LIM:DIS) is currently considered Fairly Valued. The stock's GF Value™ is $113.61, compared to a current price of $102.27 — trading 10% below its estimated fair value. The current ROIC % is 5.68% and 304.3% above the Media - Diversified industry median of 1.41. The Walt Disney Co's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For The Walt Disney Co (LIM:DIS), the current ROIC % is 5.68% as of Mar. 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 (LIM:DIS) Overvalued in 2026?
Based on GuruFocus' analysis, The Walt Disney Co stock appears to be undervalued.
The current stock price of $102.27 is trading 10% below its estimated GF Value™ of $113.61.
GuruFocus considers The Walt Disney Co to be Fairly Valued.
Key valuation signals for LIM:DIS:
ROIC %: 5.68%
GF Value™: $113.61 vs. price of $102.27 (10% below fair value)
Industry Position: 304.3% above the Media - Diversified median
No single metric tells the full story. See the LIM:DIS 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.
73GF Score
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