Invite ye felawes and frendes desirous in gold to enter the gates of Shrewd'm, for they will thanke ye later.
- Manlobbi
Stocks A to Z / Stocks D / The Walt Disney Company (DIS)
No. of Recommendations: 1
12/31/2021 12/15/2022
Price/sales: 4.85 1.99
Price/book: 3.54 1.73
Trailing P/E: 272.85 51.47
Still a long way to go, but getting hard to resist.
Am I wrong to be optimistic?
abromber
No. of Recommendations: 0
For a broader context, the price/sales ratio is now in the vicinity of 2 (a little lower) which is similar to its long-term average. It shot up to 5 over the last couple of years.
As you quoted, it was just priced spectacularly high during late 2020 and early 2021 especially. Note also that Disney is struggling with its operating margins (around 8% now) despite having time to recover (?) after the Covid disruptions. The operating margin was generally around 20% looking further back.
- Manlobbi
No. of Recommendations: 3
Thanks, Manlobbi. I just bought a bit more and I'll probably keep doing that on the way down. IMHO a great business at a fair price even though it may still go lower (actually I hope it does!) The next two years will be pretty important, but I'm more of an investor than a trader and I like its long-term outlook.
P.S. I don't think BRK has ever owned DIS. Wonder why.
No. of Recommendations: 1
I agree with you that it is great firm. I have not checked upon the proportion of their value that comes from their vast library of classic media, but arguably it will have a reduced value with so much attention upon Youtube and (genuinely high value) non-mainstream producers. Even as late as, say, 2005 you had no choice but to turn to the big publishers, so the value of their 'library' would have been higher at that time.
>P.S. I don't think BRK has ever owned DIS. Wonder why.
In 1969, Buffett purchased a large position (for him at that time) of Disney for $4 million. Then, just a year late he sold the entire stake for $6 million, however! He was clearly a fast gun in those days! :)
- Manlobbi
