The Walt Disney Company has many facets within their company
that could benefit from one of the three main methods of valuation.
The first approach Disney should use is the Market Approach for
their entertainment branch such as Disney Plus and Hulu. These
streaming services can be directly compared to the other streaming
services on the market. The ability to know the market share and the
revenue from the market gives an appropriate valuation of the
business.
The second approach would be discounted cash flow approach. The
DCF is performed by creating a financial model of the company
(Corporate Finance Solutions, 2022). Creation of the financial model
takes extensive detail to create but can give the most accurate
valuation. Due to Disney’s brand and products, the direct cash flow
model would allow the most accurate valuation of this facet of the
company.
Valuation methods
. Corporate Finance Institute. (2022, May 8).
Retrieved August 4, 2022, from
https://corporatefinanceinstitute.com/resources/knowledge/valuati
on/valuation-methods/
