‘Fair Value’ --also known as ‘Intrinsic Value’-- for DIS is around $246, right? as anyone who even pretends to make investing decisions on the basis of “fundamentals” can calculate for her or himself, using any of the standard, well-documented methods. (Or the estimate can be looked up in any of dozens of places.) Why, then, did DIS close down again today ($113.66 in after hours trading), losing (-7.5%) in the last 7 days and (-37.2%) YTD? Why is DIS being sold down?
For sure, it isn’t most healthy of companies, due to its ST assets not covering its LT liabilities, its debt having increased from 43.5% to 52.#% over the 5 five years, and not having its interest on that debt well covered by EBIT. Additionally, DIS’s rev/yr is forecast to be only 8.8%, and its return on equity only 11.7%. But --perhaps-- the real reason the stock is being sold down is the elephant in the room that the longs want to avoid talking about, namely, that Disney has chosen to become an advocate and exemplar of socio-cultural policies most people find offensive, if not abhorrent.
Thus, though a company’s “politics” aren’t normally considered to be part of its “fundamentals”, Disney has chosen to make them so, and it is suffering the consequences.