Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 22 Sept 2026
DIS· Communication Services
Disney
Disney's diverse entertainment portfolio faces challenges with underwhelming ROIC and sector-relative margins lacking moat strength.
Buffett fit
Weak fit
Owner
23
Durability
74
Management
50
Price
63
Score updated 22 Oct 2026 · analysis from 22 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Communication Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Disney entirely, we'd focus on leveraging its strong brand portfolio to enhance direct-to-consumer offerings.
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Disney's brand strength suggests resilience, yet the 5-year average of 4.97% is concerning.
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Disney's share count has slightly decreased by a CAGR of -0.29%, indicating modest .
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With a of 14.6 and an yield of 5.56%, Disney's valuation isn't overly stretched but lacks a robust .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue of $94.43B indicates significant scale in the entertainment industry.
- 2Net income of $12.4B reflects strong profitability.
- 3 of $10.08B supports operational flexibility.
- 4Interest coverage of 7.6 suggests manageable debt levels.
Concerns
5- 1 of 7.23% is below sector top-quintile, indicating weak capital efficiency.
- 2 of 37.8% underperforms sector peers, challenging .
- 3Net debt/EBITDA of 2.05 exceeds preferred levels, indicating financial strain.
- 4Current ratio of 0.71 suggests liquidity concerns.
Price history
$112-34.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Disney operates in three segments: Entertainment, Sports, and Experiences, generating $94.43B in revenue. It leverages iconic brands like Disney, Marvel, and Star Wars to produce and distribute content globally. The company earns through media networks, parks, and direct-to-consumer services. With a 37.8% , the unit economics rely heavily on brand-driven content monetization.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 21, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Communication Services
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