Is Walt Disney’s Stock Overvalued or Undervalued?

Is Walt Disney’s Stock Overvalued or Undervalued?
A screen shows the logo and a ticker symbol for the Walt Disney Company on the floor of the New York Stock Exchange, on Dec. 14, 2017. Brendan McDermid/Reuters
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Walt Disney Co. shares have lagged the S&P 500 in 2021, generating a year-to-date loss of 18.5 percent.

Disney stock has had a wild ride in recent years, but investors may be wondering whether there is any value in Disney shares after the recent pullback.

Earnings

A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value.