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The Walt Disney Company is an entertainment conglomerate broken down into 5 business segments; media networks, parks & resorts, studio entertainment, consumer products, and interactive media

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•Motion Picture and Video Production

•Consumer services

•Entertainment diversified

•Broadcasting & Cable

•Media Conglomerates

•Amusement parks & Arcades

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• Disney’s largest operating segment in terms of revenue is its media networks, which accounts for 45% of overall sales

• Second biggest and 30% of its revenue generator comes from its parks & resorts

• 15% of revenues comes from studio entertainment

• 7% consumer products and interactive media (publishing)

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• Fox• MGM• Paramount• Sony Productions

• Universal • Warner Bros • Lions Gate• DreamWorks• WWE

• NewsCorp• Time Warner• Comcast• NBC Universal • CBS

Motion Picture & Video Production

Broadcasting & cable

Media Conglomerates

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•Economy/Consumer spending

•Current events ( including weather)

•High production costs

•High production failures

•Audience saturation

•Transition to digital filming ( both TV and Movies)

•Piracy

•Demand for new technology/entertainment

• Liability issues (primarily amusement parks)

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Motion Picture and Video Production

• U.S. Consumer spending rose 1.2% in January 2013

• U.S. personal income rose 2.2

• Total U.S. revenue rose 19% in the 4th quarter of 2012

• The output of US Motion picture and video production is expected to grow at a annual compounded rate of 5% between 2013 and 2017

•y•

Hoovers, March 2013

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Television Broadcasting

•U.S corporate profits rose 8.7% in the 3rd quarter of 2012 •Total U.S. retail sales increased 3.6% in the first two months of 2013•U.S. revenue for motion pictures rose 19% in the 4th quarter of 2012• Projected to grow at 5% annual compound interest between 2013 and 2017

Hoovers, 2013

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Amusement Parks & Arcades

•Total U.S. consumer spending rose 1.2% in January 2013•U.S average retail price for diesel and regular fuel fell 3.1% in March 2013•U.S. revenue for amusement parks fell 34% in the 4th quarter of 2012•The industry is expected to grow at an annual compound interest rate of 4% between 2013 and 2017

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Motion Picture and Video Production•Pixar, Marvel, and Lucasfilms are Disney's “moneymakers” and will be releasing multiple films in 2013

Television Broadcasting •Disney owns ABC along with an additional 10 broadcast stations including ESPN•Disney owns a 30% stake in Hulu•Partner with media giant NewsCorp•Partner with YouTube•A digital distributor of films and TV shows through Apple’s iTunes

Amusement Parks & Arcades•Disney plans to build a $3.6 billion theme park in Shanghai • The construction of Disney Springs • Getting away from Disney branded vendors

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In 2012 The Walt Disney Company, for the second year in a row Disney achieved record net income, revenue, and earnings per share. In fiscal2012, net income for shareholders was a record $5.7 billion, an increase of 18% over last year, and revenue was a record $42.3 billion, up 3% from last year. Diluted earnings per share increased 24% to a record $3.13.

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Chart made by Jeanna Divita with information from Hoovers,2013

EPS Growth 24.21% 21.16% 6.92%

12 Month 36 Month 60 Month

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Walt Disney PE Ratio 5y TTM Chart

P/E Ratio, Comparison to Industry

Walt Disney Co. 15.18 12.48 17.62 17.36 7.83 12.79

 Industry, Consumer Services

15.58 13.92 15.97 15.05 21.73 –

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Graph from YCharts 2013

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Graph from Yahoo.finance.com 4/19/2013

Chart constructed by MSN money

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Graphs taken from Hoovers.com

WALT DISNEY CO: STOCK RATING SUMMARY

StockScouter gave The Walt Disney a 8 out of 10 rating

PRO

• Walt Disney Co, a large-cap growth company in the consumer services sector, is expected to outperform the market over the next six months with less than average risk.

• The StockScouter measure of relative price change and consistency is very high.

• Earnings growth in the past year is holding steady compared to earnings growth in the past three years.

• Previous day's closing price for DIS was slightly above its 50-day moving average.

CON

• Shares are being heavily sold by financial institutions

• One or more analysts has modestly decreased quarterly earnings estimates for DIS

• Two or more executives, directors or major shareholders sold a small number of shares recently.

• The ratio of DIS's price-to-earnings multiple to its five-year growth rate is above the average of all stocks in the StockScouter universe

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• Healthy and strong company who has their ups and downs with the industry

• Very strong competitor in all of its industries ranked in the top 3 of all

• Make the appropriate acquisitions and partnerships in their industry to get ahead

• Future depends on innovation which they have proven capable of

• Have a strong competitive edge and predict continual growth in 2013

• Their Ratio’s are competitive with the industry

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• There is always going to be a demand for entertainment •The Walt Disney Company is nearly a century old company that continues to grow • They continually bounce back from slumps in the industry• Their recent acquisition of lucasfilms shows promise for future growth • Disney has submerged themselves in all areas of entertainment making themselves prevalent in many industries • You’re never too old for Disney!

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Schein, A (2013). The Walt Disney Company. Retrieved from http://www.hoovers.com/.

Mergent Online (2013). The Walt Disney Company. Retrieved from: http://www.mergentonline.com/.

MSN Money (2013). The Walt Disney Company. Retrieved from: http://investing.money.msn.com/investments/stock-price?Symbol=DIS&ocid=qbes

Yahoo Finance (2013). The Walt Disney Company. Retrieved from: http://finance.yahoo.com/q?s=DIS&ql=1

YCharts (2013). The Walt Disney Company. Retrieved from: http://ycharts.com/companies/DIS/pe_ratio

The Walt Disney Company (2013). Annual Report. Retrieved from www.thewaltdisneycompany.com