DIS – Market expectations are for Uniform ROA to remain stable at current levels, and management is confident in Marvel, their digital properties, and their Parks business

• The Walt Disney Company (DIS:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 17.7x Uniform P/E. However, even at these levels, the market has fairly bullish expectations for the firm, and management is confident in Marvel, their digital properties, and their Parks business
• Specifically, management is confident that the 19 Marvel movies have an average box office of $845mn per film, and that neither ESPN+ nor their Disney properties are dependent on the Fox acquisition, although both stand to benefit. Additionally, they are confident that higher rates partially offset the decrease in advertising revenue as a result of fewer network impressions, and in the expansion of their Parks business, particularly with regards to Toy Story Land