Company DCF analysis file
Disney DCF Analysis
A Disney DCF needs different investment clocks for content, sports rights, parks and cruise capacity. FY2025 cash also benefited from tax-payment timing, while the subsequent portfolio changed. A group earnings increase cannot stand in for a cash forecast of the retained businesses.
Revenue, expenses and profit on one annual basis
Historical Disney consolidated comparison, $ millions: FY2024 ended 2024-09-28 and FY2025 ended 2025-09-27. These annual periods are separate from the later interim observation below.
| Measure | FY2024 | FY2025 |
|---|---|---|
| Revenue | 91,361 | 94,425 |
| Service costs: positive expense | 52,509 | 52,677 |
| Product costs: positive expense | 6,189 | 6,089 |
| Selling, general, administrative and other | 15,759 | 16,501 |
| Depreciation and amortization | 4,990 | 5,326 |
| Restructuring and impairment charges | 3,595 | 819 |
| Income before income taxes | 7,569 | 12,003 |
| Consolidated net income | 5,773 | 13,431 |
| Net income attributable to Disney | 4,972 | 12,404 |
Source: Annual financial statements. Annual values are reported unless a row is marked derived.
The GAAP statement shown here reconciles to pretax income rather than presenting this expense list as a segment operating-profit total. The 2025 tax benefit affects consolidated net income; it is not another source of operating revenue. Attribution to Disney shareholders differs from consolidated profit because noncontrolling interests retain an economic claim.
Service and product revenues use different cost bases
| Reported revenue, $ millions | FY2024 | FY2025 |
|---|---|---|
| Service revenue | 81,841 | 84,588 |
| Product revenue | 9,520 | 9,837 |
Source: Annual business disclosures and financial notes. Annual values are reported unless a row is marked derived.
These are accounting revenue categories, not the Entertainment, Sports and Experiences segment split. Do not label the service row as streaming or the product row as parks. The valuation case must still connect content release, rights usage and physical capacity to the appropriate revenue and expense timetable.
Reconcile reported cash before forecasting investor cash
| Measure | FY2024 | FY2025 |
|---|---|---|
| 2025 operating cash | Defined annual period | 18,101 |
| 2025 parks/resorts/other property investment | Positive deduction | 8,024 |
| Cash after property investment: derived | 8,559 | 10,077 |
Source: Annual cash-flow statement and related notes. Annual values are reported unless a row is marked derived.
The 2025 calculation is 18,101 minus 8,024 = $10,077 million. Content cash already affects operating cash under this presentation, so deducting it again after the reported starting point would double count payments. Tax deferrals also need a dated reversal schedule rather than being assumed permanent cash-conversion improvements.
The later interim period stays separate
| Observation | Period-specific evidence |
|---|---|
| Reported period basis | Q3 FY2026 covers 2026-03-29 through 2026-06-27 and was released 2026-08-05. Revenue was $25,248 million in this quarter. |
| Interpretation boundary | The later quarter includes a different operating perimeter after the Star India, Fubo and NFL arrangements. Content spending, property payments and cash tax timing need separate explanations before annual cash is projected forward. |
Source: official reporting for the stated period. The dated quarter is not annualized here and is not added to either full-year column. Later reporting must be checked before refreshing the valuation date.
Turn the statements into a DCF operating case
Reconcile segment operating results to a recurring consolidated operating basis before applying operating taxes, noncash costs, content timing, working capital and physical investment. Keep the change to equity-method accounting for Star India, Fubo consolidation and NFL-media acquisition on their actual dates. Do not add investee gross revenue while keeping only Disney’s share of earnings, or value consolidated cash as wholly attributable to common shareholders.
| Driver | Evidence to carry into the forecast | Downside condition to test |
|---|---|---|
| Content and sports | Release receipts, rights-payment dates and amortization | Audience or licensing demand weakens after commitments are paid |
| Experiences capacity | Attraction/cruise readiness, capacity and spending | An opening slips while construction cash continues |
| Tax and portfolio scope | Cash-tax settlement and acquired/disposed perimeter | A deferral or transaction gain is treated as perpetual operating cash |
Stress a delayed attraction separately from a weaker content slate. Include corporate costs, noncontrolling claims and any retained investment at the equity-bridge stage. The terminal cash case must sustain the content and physical assets that produce its demand, rather than applying one investment ratio to unlike businesses.
Use the Disney financial analysis for the broader operating context, the company forecast to state the operating assumptions, and the DCF calculator only after defining the investor cash stream. Keep the statement definitions, reporting dates and your own assumptions visible when comparing valuation cases.
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