Disney
By Melina Lee and Hilary Palmer
https://www.youtube.com/watch?v=fIT7nhQyL_8
Company Mission
The company has focused on three key strategic priorities
that have been critical to its success:
 Creating exceptionally high-quality content for families
 Making that content more engaging and accessible through the
innovative use of technology
 Growing its brands and businesses in markets around the world
Company Background
• Oct 16, 1923 was the start of the Disney Company and
it was known as the Disney Brothers’ Studio
• Nov 18, 1928 Steamboat Willie was released in New
York
• Dec 21, 1937 the first feature-length animated film
premiered
• Dec 26, 1939 the studio began its move to Burbank, CA
from LA.
Company Background
Oct 1, 1949 the Walt Disney Music Company was
formed
July 17, 1955 the first Disney park opened in Anaheim,
CA
Oct 3, 1955 the Mickey Mouse Club debuts on television
Dec 15, 1966 Walt Disney died at age 65
Company Background
• Oct 1, 1971 Walt Disney World resort opened with the
Magic Kingdom and two hotels near Orlando, FL
• Apr 15, 1983 the first international Disney theme park
opened, Tokyo Disneyland
• Apr 18, 1983 The Disney Channel started broadcasting
• Mar 28, 1987 The first Disney store opened in Glendale,
CA
Company Background
May 6, 1991 The Walt Disney Company joined the Dow
Jones Industrial Average
Dec 5, 1994 Disney Interactive was formed
1995 Disney made a 19 billion dollar purchase of Capital
Cities/ABC
Nov 18, 1996 Radio Disney debuted
July 30, 1998 Disney Magic Cruise Ship inaugural cruise
departed
Company Background
• 2001 Disney acquires Baby Einstein and FOX Family
• May 15, 2004 Disney Acquires The Muppets Properties and
The Bear in the Big Blue House
• 2006 Disney’s High School Musical became the first full-length
movie to be sold digitally on iTunes, Acquired Pixar Animation
Studios
• Dec 31, 2009 Marvel Entertainment joined the Disney family
• Dec 21, 2012 acquired Lucasfilm Ltd. LLC
Company Overview
• The Walt Disney Company
is a leading diversified
international family
entertainment and media
enterprise with five
business segments:
o Media networks
o Parks and resorts
o Studio entertainment
o Consumer products
o Interactive media
•The Walt Disney
Company Rankings
o#61 in FORTUNE 500
(June 2014)
oS&P 500
oDow Jones Industrials
oDow Jones Global Titans
o#39 in FT Global 500
(June 2014)
o#61 in FORTUNE 1000
(June 2014)
Company Overview
Media Industry Analysis
•People are more in control
because of the progress and
digitalization which has resulted
in an increase of consumption
•Challenges include a decrease of
revenue and controlling their
content due to copyright
•They are able to customize the
consumers experiences
US Annual Television
Revenue
Theme Park Industry Analysis
Competitive Analysis
Competitive Analysis
Competitive Analysis
S.W.O.T Analysis
•Brand reputation/loyalty
•Acquisitions
•Diversified portfolio
•Global expansion & alliances
•Market leader in Animation
•Evolving viewership trends
•Decline of cinema popularity
•Minimal control over web
viewership platforms
•High cost of operations
•Growth in emerging markets
•Rise of inexpensive viewing
platforms
•Release of new successful stories and
characters
•Movie production and viewership in
China
•Piracy
•Strong competitors
•Constant need for technological
upgrades
•Changing consumer trends
Strength
s
Weakne
sses
Opportuni
ties
Thre
ats
Selected Financial Data
Projections
Short-Term: 13.40%
Medium-Term: 10.43%
Long-Term: 10.80%
Key Stock Statistics
Cash Flow Statement
Valuation
Current Price: 106.95
Estimated Intrinsic Value Per Share: 257.87
Margin of Safety: 59%
Recommendation: BUY!
Financial management

Financial management

  • 1.
    Disney By Melina Leeand Hilary Palmer https://www.youtube.com/watch?v=fIT7nhQyL_8
  • 2.
    Company Mission The companyhas focused on three key strategic priorities that have been critical to its success:  Creating exceptionally high-quality content for families  Making that content more engaging and accessible through the innovative use of technology  Growing its brands and businesses in markets around the world
  • 3.
    Company Background • Oct16, 1923 was the start of the Disney Company and it was known as the Disney Brothers’ Studio • Nov 18, 1928 Steamboat Willie was released in New York • Dec 21, 1937 the first feature-length animated film premiered • Dec 26, 1939 the studio began its move to Burbank, CA from LA.
  • 4.
    Company Background Oct 1,1949 the Walt Disney Music Company was formed July 17, 1955 the first Disney park opened in Anaheim, CA Oct 3, 1955 the Mickey Mouse Club debuts on television Dec 15, 1966 Walt Disney died at age 65
  • 5.
    Company Background • Oct1, 1971 Walt Disney World resort opened with the Magic Kingdom and two hotels near Orlando, FL • Apr 15, 1983 the first international Disney theme park opened, Tokyo Disneyland • Apr 18, 1983 The Disney Channel started broadcasting • Mar 28, 1987 The first Disney store opened in Glendale, CA
  • 6.
    Company Background May 6,1991 The Walt Disney Company joined the Dow Jones Industrial Average Dec 5, 1994 Disney Interactive was formed 1995 Disney made a 19 billion dollar purchase of Capital Cities/ABC Nov 18, 1996 Radio Disney debuted July 30, 1998 Disney Magic Cruise Ship inaugural cruise departed
  • 7.
    Company Background • 2001Disney acquires Baby Einstein and FOX Family • May 15, 2004 Disney Acquires The Muppets Properties and The Bear in the Big Blue House • 2006 Disney’s High School Musical became the first full-length movie to be sold digitally on iTunes, Acquired Pixar Animation Studios • Dec 31, 2009 Marvel Entertainment joined the Disney family • Dec 21, 2012 acquired Lucasfilm Ltd. LLC
  • 8.
    Company Overview • TheWalt Disney Company is a leading diversified international family entertainment and media enterprise with five business segments: o Media networks o Parks and resorts o Studio entertainment o Consumer products o Interactive media •The Walt Disney Company Rankings o#61 in FORTUNE 500 (June 2014) oS&P 500 oDow Jones Industrials oDow Jones Global Titans o#39 in FT Global 500 (June 2014) o#61 in FORTUNE 1000 (June 2014)
  • 9.
  • 10.
    Media Industry Analysis •Peopleare more in control because of the progress and digitalization which has resulted in an increase of consumption •Challenges include a decrease of revenue and controlling their content due to copyright •They are able to customize the consumers experiences
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
    S.W.O.T Analysis •Brand reputation/loyalty •Acquisitions •Diversifiedportfolio •Global expansion & alliances •Market leader in Animation •Evolving viewership trends •Decline of cinema popularity •Minimal control over web viewership platforms •High cost of operations •Growth in emerging markets •Rise of inexpensive viewing platforms •Release of new successful stories and characters •Movie production and viewership in China •Piracy •Strong competitors •Constant need for technological upgrades •Changing consumer trends Strength s Weakne sses Opportuni ties Thre ats
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
    Valuation Current Price: 106.95 EstimatedIntrinsic Value Per Share: 257.87 Margin of Safety: 59% Recommendation: BUY!

Editor's Notes

  • #4 Walt signed a contract with MJ Winkler to produce a series of Alice Comedies Burbank is where the current head quarters is Disney Interactive: intended to develop, marke,t and distribute cartridge games and CD-rom software Lucasfilm Ltd. LLC: the global entertainment company responsible for the legendary Star Wars franchise
  • #9 S&P – American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ Global Titans – includes the worlds largest multinational companies
  • #11 People are more in control because of the progress and digitalization (accessibility) resulted in an increase of consumption Challenges include a decrease of revenue and controlling their content due to copyright They are able to customize the consumers experiences (Example: tablets) Emerging opportunities for digital education Brand loyalty Summit/Lions Gate – Twilight
  • #12 Barriers to entry: the importance of the brand name
  • #13 Barriers to entry: expense, land, brand recognition/loyalty Increased growth, as technology improves it can lead to new state of the art rides and experiences (Universal Studio: 3D and interactive wands) A luxury- still grew in a recession
  • #17 Emerging markets (India & Russia)
  • #19 Over the next five years, the analysts that follow this company are expecting it to grow earnings at an average annual rate of 10.8%. This year, analysts are forecasting earnings increase of 13.4% over last year. Analysts expect earnings growth next year of 13.34% over this year's forecasted earnings. These are estimates of growth based on the technological development happening NOW We project that the company will grow fast at first and then continue to grow but at a slower rater later on