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The Wonderful World of Disney

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... Wonderful World of Walt Disney' reigns as a classic ... produce and license computer software and video games. Walt Disney Corporation Operation Revenues ... – PowerPoint PPT presentation

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Title: The Wonderful World of Disney


1
The Wonderful World of Disney
  • Presented by
  • Mimi Nguyen
  • Thu Nguyen
  • Albert Kasumaj
  • Robin Fu
  • Yee Lee
  • Kim Vu

Walt Disney Corporation
2
Mission Statement
  • Dedicated to making the dreams of families and
    children a reality through public service
    initiatives, community outreach and volunteerism
    in the areas of learning, compassion, the arts
    and the environment.

3
The Disney Story
  • Founded by Walt and Roy E. Disney
  • Walt Disney was an American artist and cartoonist
  • 1925
  • The Disney Bros. Studio opens
  • First animated comedy films titled Alice

4
Mickey Mouse is Born
1928 in Chicago, Illinois
  • In the Plane Crazy cartoon, Mickey Mouse was
    introduced and popularized
  • Patent and trademark of Mickey Mouse
  • Began producing many Mickey Mouse films.

5
The Dream Continues.
  • 1950-1960s Walt Disney Productions Ltd major
    producer of films for theaters and television
  • October 27, 1954
  • First regularly scheduled television series on
    ABC Television Network

6
Dreams become Reality
  • Longest-running Primetime series in TV history
  • The Wonderful World of Walt Disney reigns as a
    classic masterpiece in family entertainment
  • Disney Branches out..

7
Disneyland Anahiem, CA 1955
8
Orlando, FL 1971
9
Walt Disney Corporation
10
Dream ExpansionOperations of the Company
  • Media Networks
  • Parks and Resorts
  • Studio Entertainment
  • Consumer Products

11
Media Networks
  • BROADCASTING
  • ABC Television Network
  • 10 owned and operated TV stations
  • 59 radio stations
  • Television production
  • Touchstone
  • Buena Vista Production

12
Media Networks
  • CABLE NETWORK
  • All ESPN-branded businesses
  • Disney Channel
  • International basic TV channels
  • Fox Kids International
  • Internet Websites

13
Cool FACT
  • The ABC Television Network and the 226 primary
    affiliated stations reach 99 of all US
    television households.

14
(No Transcript)
15
Top 5 Industry Revenues in Cable/Media
16
Parks and Resorts
17
Studio Entertainment
  • Produces and acquires
  • live-action
  • animated motion pictures
  • animated television production
  • musical recordings
  • Disney film and television library distribution

18
Examples of Studio Entertainment projects
19
Consumer Products
  • licenses the companys characters and other
    intellectual property
  • direct retail distribution through the Disney
    Store worldwide
  • Books and magazines
  • produce and license computer software and video
    games

20
Walt Disney Corporation Operation Revenues
21
Financial Ratios Analysis
  • Profit Margin
  • (5 yr. pretax)
  • Strong 9.5
  • Industry 10.7
  • Investment Return (ROA)
  • Satisfactory 2.4
  • Industry 5.4
  • Management Efficiency
  • (Rev.)
  • Satisfactory 234,000
  • Industry 470,000
  • Growth Ratio (EPS)
  • Weak 30.40
  • Industry 30.40
  • Fina.Condition
  • (quick)
  • Satisfactory 0.8
  • Industry 0.8
  • Price Ratio (P-Sale)
  • Strong 1.66
  • Industry 1.34

22
DIS stock(July 25,2003)
  • Share Price
  • 21.29
  • Today 21.92
  • Shares Outstanding
  • 2 billion
  • Free Cash Flow to Equity (FCFE)
  • 8.134 billion
  • HPR
  • 2003 expected 0.32
  • Market Capitalization
  • Today 43.84 billion

23
Risk Analysis
  • Beta (systematic risk)
  • 2003 1.0025
  • Unlevered Beta (all equity no debt)
  • 0.065

24
Evaluation of DIS Stock
  • K (required return on equity)
  • Est. 0.25 DCF
  • 2003 0.021 CAPM
  • Cost of Equity (Ke)
  • 2002 0.093
  • Cost of Debt (Kd)
  • 2002 0.0575

The company is currently UNDERPRICED
25
Capital Structure
Debt increases as equity decreases over time
WACC 2002 0.071157346
26
MM PropositionModel 3
27
Market Efficiency
  • Expansion of Walt Disney Internet Groups Motion
    Video Technology (7/14/03) SEMI STRONG form

(7/14/03) 21.31 (7/16/03) 21.05
28
Market Efficiency
  • House Appropriations Committee restricts networks
    to 35 of national audience WEAK form
  • (7/16/03) 21.05
  • (7/2103) 20.40

29
5-Year Price Index
30
Buy, Sell, or Hold?
31
Strengths of Disney Corporation
  • HPR is POSITIVE
  • Capital Structure STABLE
  • Stock Underpriced? Price will increase
  • Financial Ratio STENGTH
  • LOW debt ratio
  • Beta is Low?low risk?stable

32
And They Lived Happily Ever After
In Conclusion
  • Disneyland would never be completed as long as
    there was imagination left in the world.
  • Walt Disney

33
THE END
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