Disney (DIS) Bull Bear Case

Buu/BEAR CASE Buu BEAR CASE CASE EPS will expand to EPS will shrink to $4.20 $3.75 in FY14. in FY14. Using a P/E multiple of Using a P/E multiple of 19x*, 10x*, Disney will be valued at Disney will be valued at $80. $38. Assumprions: Assumprions: Increasing adoption of new media and online TV will cause subscriber growth to slow down. Disney will continue to experience robust growth in emerging markets like Latin America and Asia Pacific translating into a higher than expected EPS for FY14. Weaker-than-expected box office sales and higher cost of production could hurt earnings growth. Film related write-offs in Študio Entertainment could lower earnings for the segment. Theme park revenues will grow as a result of an improving consumer environment and leisure spending. Record box office sales of upcoming 3D movies and recent acquisitions in the Studio Entertainment segment will increase earnings. A worsening macroeconomic environment could significantly hurt revenues from theme parks and advertising, as well as consumer products. Revenues from new partnerships like the Netflix deal, as well as increased capex on theme parks will boost revenues in the future. Currency fluctuations will negatively impact revenues in the coming quarters. *The 10x multiple is Disney's 5yr historical low P/E multiple. Robust growth in Disney's newer segments like Interactive will flourish and drive future growth *The 19x multiple is Disney's 5yr historical high P/E multiple. I NE SOURCES: Company Data, SEC filings, Bloomberg Professional Services etc DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc.