Darkbeer
11-04-2002, 03:19 PM
Is the worst over for Disney stock? (http://www.msnbc.com/news/830400.asp) - MSNBC, 11/4/02
QuikQuote: According to one analyst, if you were to break off and sell the theme parks and consumer products business, the film studio, cable channels and ABC television network —just as a back-of-the-envelope armchair exercise — you’d wind up with a per-share price closer to $30 after subtracting the company’s total debt.
But most analysts don’t buy this sum-of-the parts analysis, pointing out that by several other measures, the stock is still overvalued. “We have Disney at around $18 trading at 13.8 times on an enterprise value to EBITDA basis up close to 40 times next year’s free cash flow and about 25 times next year’s earnings,” says David Miller at Sanders Morris Harris. “So while Disney tends to usually trade at a premium to the S&P we hardly think that’s a cheap valuation as espoused by yesterday’s Barron’s article.”
QuikQuote: According to one analyst, if you were to break off and sell the theme parks and consumer products business, the film studio, cable channels and ABC television network —just as a back-of-the-envelope armchair exercise — you’d wind up with a per-share price closer to $30 after subtracting the company’s total debt.
But most analysts don’t buy this sum-of-the parts analysis, pointing out that by several other measures, the stock is still overvalued. “We have Disney at around $18 trading at 13.8 times on an enterprise value to EBITDA basis up close to 40 times next year’s free cash flow and about 25 times next year’s earnings,” says David Miller at Sanders Morris Harris. “So while Disney tends to usually trade at a premium to the S&P we hardly think that’s a cheap valuation as espoused by yesterday’s Barron’s article.”