Disney (DIS) shares struggled over the past 5 years. The house of Mickey saw a rapid dropped from $160 to $85 in 2020 from impact of COVID. Shares quickly reached all-time high of nearly $200 in 2021. Since then, the entertainment conglomerate struggled to find its footing and we are setting in just below $90.
Share price aside, we wanted to explore one fundamental measure that shows sign of hope for long-term investor. That measure is Price to Book value. We utilized data from Valueline to get various metrics such as Price to Earning (P/E), Price to Cash Flow (P/CF), Price to Book (P/B) and Dividend yield. By far, the highest correlation to stock price is P/B. Our team ran a quick analysis of P/B, build out a historical range of low to high and compute conservative target of price target. Below is the chart for illustration. Continue reading