Disney Stock Plunges 47%, But Analysts See Value in the Media Giant
Walt Disney stock has been on a slide since its all-time high in March 2021, dropping 47% below that mark as of September 17. Despite this decline, analysts say the media and entertainment giant is still a value stock with a forward price-to-earnings ratio of 14.5, making it 28% cheaper than the S&P 500 index.
The company's legacy operations in cable-TV have been affected by the shift to streaming video entertainment, which has become prevalent thanks to pioneers like Alphabet's YouTube and Netflix. However, Disney's late entry into the streaming market has proven successful with its flagship platform Disney+ now having over 191 million subscribers as of September 27, 2025.
The experiences division remains the crown jewel of the Disney empire, accounting for 39% of total revenue and 54% of operating income. With a wide economic moat due to its unparalleled intellectual property, including Marvel, Pixar, and Lucasfilm franchises, Disney is poised for growth in the coming years.