Disney is the company I selected for my class project, and I think the
valuation method that can best be applied to Disney is the discounted
cash flow method. Choosing this method would allow them to consider
more variables especially those that may or may not remain the same
such as debt repayment, growth rates, and margins. The economy
certainly took a hit during the pandemic but started to see an uptick
once the world started to open back up. Unfortunately, the uncertainty
of the economy today and the potential for another recession could
have an impact on future projected cash flows. The global economy is
still struggling and that leaves Disney's future projected cash flow in
limbo, resulting in the discounted cash flow method being a great
option.
