Disney valuation model

Description
This is a comprehensive valuation model for financial analysis purposes, using Disney as a real company example. The model employs three common corporate finance and valuation techniques: Enterprise Discounted Cash Flows, Discounted Economic Profit, and Adjusted Present Value. Each of these methods provides a different perspective on the company's value and helps to ensure a well-rounded valuation.


The model includes fourteen years of historical data, detailed seven-year operating projections, and provides revenue, cost, capital expenditures (CAPEX), and investment in content projections. 
Capital structure projections, including liquidity, leverage, and dividend capacity, are also incorporated, which impact the valuation of tax shields. The model also allows for the yield curve to be built into the cost of equity assumptions. Additionally, forward and current priced multiples are utilized to further support the valuation.


The model builds up from the value of operations (net enterprise value) to the value of equity. It also takes into account the valuation of employee options using the Black-Scholes model. The model allocates the value of the company between current invested capital, current value creation (measured as current ROIC - WACC), short-term value creation, and the value of new long-term investments.


Detailed income statement, invested capital, cash-flow statement, and statement of equity projections are provided, and adjustments are made to lease financing and capitalized interest for valuation purposes. Finally, the model calculates financial ratios and metrics for benchmarking with other companies.

Note:
This financial model is for educational purposes only. It is important to understand that while this model analyzes a publicly traded company, the assumptions and projections made in this model should not be relied on for any investment or financial decisions. The assumptions made in this model have not been vetted by the author or any third parties and may be inaccurate. This model is purely hypothetical and should be viewed as such.