Business Cost of EquityAfter-tax cost E/(D+E) D/(D+E) Cost of capitalMedia Networks 10.10% 3.29% 78.98% 21.02% 8.67%Parks and Resorts 9.12% 3.29% 78.98% 21.02% 7.90%Studio Entertainment 10.43% 3.29% 78.98% 21.02% 8.93%Consumer Products 10.39% 3.29% 78.98% 21.02% 8.89%Disney 10.00% 3.29% 78.98% 21.02% 8.59%
Cost of capital
Riskfree rate = 4%Risk Premium = 4.82%Market value of Equity = $55,101Market value of Debt = $14,668Marginal tax rate = 37.30%
Business Unlevered BetaD/E Ratio Levered BetaCost of EquityMedia Networks 1.0850 26.62% 1.2660 10.10%Parks and Resorts 0.9105 26.62% 1.0625 9.12%Studio Entertainment 1.1435 26.62% 1.3344 10.43%Consumer Products 1.1353 26.62% 1.3248 10.39%Disney 1.0674 26.62% 1.2456 10.00%
Business Comparable firms Number of firmsMedia Networks Radia and TV broadcasting companies 24Parks and Resorts Theme park & Entertainment firms 9Studio Entertainment Movie companies 11Consumer Products Toy and apparel retailers; Entertainment software 77
Average levered beta Median D/E Unlevered beta Cash/Firm Value1.22 20.45% 1.0768 0.0075435323431.58 120.76% 0.8853 0.0276682276341.16 27.96% 0.9824 0.1408439476631.06 9.18% 0.9981 0.120816436296
Unlevered beta corrected for cash1.0850 1.08500.9105 0.91051.1435 1.14351.1353 1.1353
Business Revenues in 200 EV/Sales Estimated ValFirm Value Pr Unlevered betaMedia Networks $10,941 3.41 $37,278.62 49.25% 1.0850Parks and Resorts $6,412 2.37 $15,208.37 20.09% 0.9105Studio Entertainment $7,364 2.63 $19,390.14 25.62% 1.1435Consumer Products $2,344 1.63 $3,814.38 5.04% 1.1353Disney $27,061 $75,691.51 100.00% 1.0674
Disney Unlevered beta (without cash) $75,691.51
Unlevered beta
Ticker Exchange CodShort NameROMN US Equity ROMN US FILM ROMAN INCMDLK US Equity MDLK US MEDIALINK WORLDWAMCM US Equity AMCM US AM COMM INCWGNR US Equity WGNR US WEGENER CORPPTSX US Equity PTSX US POINT.360NOOF US Equity NOOF US NEW FRONTIER MEDWWE US Equity WWE US WORLD WRESTLINGWWMO US Equity WWMO US WORLD WIDE MOTIODGIT US Equity DGIT US DIGITAL GENERATHTVNQ US Equity HTVNQ US HISPANIC TV NETFOX US Equity FOX US FOX ENTERTAINM-AKDE US Equity KDE US 4KIDS ENTERTNMTNTN US Equity NTN US NTN COMMCCU US Equity CCU US CLEAR CHANNELFSCI US Equity FSCI US FISHER COMMUNICACRWN US Equity CRWN US CROWN MEDIA HL-ANLPN US Equity NLPN US NATIONAL LAMPOONGTN US Equity GTN US GRAY TELEVISIONFILM US Equity FILM US INTELEFILM CORP
Industry Subgroup Beta D/E EV/Sales EV/EBIT Std Dev Of ErBroadcast Serv/Program 2.531 0.00% 0.06311464 NA 20.303Broadcast Serv/Program 0.363 31.89% 0.43964535 NA 11.01Broadcast Serv/Program 0.491 47.38% 0.64475505 18.8821122 14.501Broadcast Serv/Program 1.289 0.05% 0.64494757 11.5499771 12.488Broadcast Serv/Program 0.583 129.09% 0.70138424 25.3908519 16.041Broadcast Serv/Program 0.69 15.95% 0.95398531 13.8572964 9.951Broadcast Serv/Program 0.678 1.39% 1.59254609 22.0505475 4.923Broadcast Serv/Program -0.232 25.82% 2.38053 7.9351 22.052Broadcast Serv/Program 1.042 6.66% 2.38213607 22.5911016 10.314Broadcast Serv/Program 5 1165.59% 2.39419516 NA 1044.551Broadcast Serv/Program 1.235 3.51% 2.84782622 NA 4.302Broadcast Serv/Program 1.041 2.18% 3.45917764 18.3088347 6.725Broadcast Serv/Program 0.663 5.34% 3.58024717 NA 7.247Broadcast Serv/Program 1.387 34.64% 4.0312906 21.6818716 4.893Broadcast Serv/Program 0.722 69.49% 4.47919333 NA 5.446Broadcast Serv/Program 1.645 115.95% 5.60232346 NA 17.068Broadcast Serv/Program 0.89 6.75% 5.81167447 NA 20.303Broadcast Serv/Program 0.326 102.77% 6.47281414 22.9887323 4.883Broadcast Serv/Program 3.1265 158.56% 8.654475 NA 223.318Average 1.21986842 0.20445236 3.40724067Median 0.89 0.25815173 2.39419516 20.2819919Wtd average
Alpha Total Debt (S Total SharehoCurrency Adj Interest Expe EBITDA(Earn B-1.839 0 -3.78 5.512864 0 40.110.628 6.58 27.2 20.636 0.28 2.090.364 6.01 7.3 12.68447 #N/A N.A. 1.431.467 0.01 15.08 20.24047 0.06 31.428 29.16 31.07 22.58871 #N/A N.A. 9.20.015 5.62 33.93 35.23896 1.84 11.95
-0.064 9.9 341.96 714.5963 0.78 36.30.156 0.11 9.8 0.426106 0 0.090.115 10.02 70 150.4218 1.54 14.38
107.326 1.45 -4.52 0.124401 #N/A N.A. -19.270.475 942 12973 26809.11 241 4130.384 5.61 132.67 256.9207 #N/A N.A. 25.261.268 4.71 3.77 88.28013 0.85 2.540.076 8778.62 14256.16 25339.21 432.79 2191.92
-0.057 292.61 237.79 421.1089 19.45 36.150.3 484.51 714.15 417.8601 #N/A N.A. 16.66
0.67 0.41 2.53 6.072974 0 -0.870.048 658.22 408.61 640.4498 35.67 79.98
25.196 1.67 -1.56 1.053253 0.42 -5.2611237.22 54962.5359
Sales/Revenu Operating Inc Net Income/NeS&P LT Local Capital ExpenCash43.3 -5.59 -2.11 0 -0.12 2.78
47.37 -0.52 -1.87 0 -1.35 6.3928.7 0.98 0.67 0 -1.02 0.19
23.46 1.31 0.81 0 -0.15 5.1268.42 1.89 2.82 0 -3.08 3.7636.75 2.53 -11.89 0 -2.77 5.8
374.26 27.03 -19.2 0 -10.59 128.470.2 0.06 0.06 0 0 0.06
66.29 6.99 -126.59 0 -0.72 2.530.62 -24.07 -38.51 0 -3.17 0.09
9725 -103 581 0 -80 5653.14 10.04 6.99 0 -2.62 78.7125.61 -2.47 -2.19 0 -0.95 1.3
8421.06 1565.72 -16053.7 0 -548.64 170.09154.09 -1.27 -1.99 -4.47 -39.68 23.52161.01 -234.06 -313.03 0 -4.24 0.34
0.94 -1.11 -1.61 0 -0.01 1.02198.64 55.93 -27.89 -4.35 -14.97 12.91
0.28 -6 -12.64 0 -0.05 0.319429.14 1294.39 499.38
Changes in WoEPS Growth-5.58 #N/A N.A.-1.99 #N/A N.A.-0.69 #N/A N.A.2.51 #N/A N.A.
-28.71 0.362-5.44 #N/A N.A.
-47.34 8.909-0.09 #N/A N.A.1.59 0.703
-8.79 #N/A N.A.-1198 1.965
7.97 #N/A N.A.-0.85 #N/A N.A.
131.41 2.05351.44 #N/A N.A.
-45.98 #N/A N.A.1.58 #N/A N.A.
14.45 4.733-0.54 #N/A N.A.
Ticker Exchange CodShort Name Industry SubgRaw BetaMVSN US EquitMVSN US MACROVISION CORP Motion Pictur 1.735ZOMX US EquitZOMX US ZOMAX INC /MN Motion Pictur 1.174BDE US Equity BDE US BRILLIANT DIGITA Motion Pictur 1.469OPIX US EquityOPIX US ODYSSEY PICTURES Motion Pictur 0.197FMLY US EquityFMLY US FAMILY ROOM ENT Motion Pictur 0.707DISK US EquityDISK US IMAGE ENTERTAIN Motion Pictur 1.054MGM US EquityMGM US METRO-GOLDWYN Motion Pictur 1.04LPAC US EquityLPAC US LASER-PAC MEDIA Motion Pictur 1.347VACM US EquitVACM US VALCOM INC Motion Pictur 1.726
1.161
D/E EV/Sales EV/EBIT Std Dev Of Er Alpha Total Debt (S0.00% 9.54260708 25.8087014 8.327 -0.237 0.023.30% 0.24187925 NA 7.762 -0.38 3.74
14.96% 14.0247037 NA 25.467 2.663 3.4827.76% 30.3221235 NA 26.497 1.035 1.1236.89% 4.85082439 NA 24.976 0.515 1.0837.81% 0.50927479 23.0537406 9.938 0.429 15.8538.36% 2.16360438 NA 5.167 -0.123 1156.7264.67% 0.74719276 8.8851573 8.939 0.354 11.94
671.67% 3.12459378 NA 20.71 -1.43 6.920.27962033 2.6330991 1200.87
3.12459378 23.0537406
Total SharehoCurrency Adj Interest Expe EBITDA(Earn BSales/Revenu Operating Inc296.86 1074.497 0 49.57 102.26 37.81130.55 113.2786 0.23 5.9 185.5 -2.45
-5.68 23.26669 3.6 -2.36 1.89 -2.581.2 4.034761 0.16 -0.36 0.17 -0.54
0.79 2.927676 0.06 -3.68 0.82 -3.731.66 41.91844 1.45 9.43 108.19 2.39
2514.47 3015.228 79.93 -64.03 1654.1 -101.1418.81 18.46337 0.78 7.37 31.75 2.67
6.22 1.030271 0.61 -1.33 2.41 -1.524294.64481 2087.09
Net Income/NeDividends Pai Capital ExpenCash&Near CaChanges in WoIBES PEG Ratio12.09 0 -3.87 98.69 47.19 1.595-0.68 0 -2.95 72.15 0.07-6.35 0 0 0.24 -0.95-1.92 0 -0.02 0 0.18-4.22 0 -0.02 0.03 -1.32-4.22 0 -1.85 2.67 0.94
-142.25 0 -23.05 593.13 530.291.18 0 -2.64 6.68 0.2
-2.13 0 -0.4 0.42 -0.9774.01
IBES PEG Ratio
Ticker Exchange CodShort Name Industry SubgRaw BetaTRV US Equity TRV US THOUSAND TRAILS Resorts/Them 0.062FUN US Equity FUN US CEDAR FAIR -LP Resorts/Them 0.415GET US Equity GET US GAYLORD ENTMNT Resorts/Them 0.915MTN US Equity MTN US VAIL RESORTS Resorts/Them 1.15BXG US Equity BXG US BLUEGREEN CORP Resorts/Them 1.656ILX US Equity ILX US ILX RESORTS INC Resorts/Them 1.872PKS US Equity PKS US SIX FLAGS INC Resorts/Them 2.491MPTT US EquityMPTT US MPTV INC Resorts/Them 2.457AESK US EquityAESK US AMERICAN SKIING Resorts/Them 3.204
1.58022222
D/E EV/Sales EV/EBIT Std Dev Of Er Alpha Total Debt (S0.00% 1.16040567 14.5854338 7.501 1.246 0
27.50% 3.45482748 13.5279551 2.705 0.291 375.1548.07% 2.29422048 NA 4.603 -0.003 340.64
119.79% 1.77628547 21.6454229 5.206 -0.002 602.79158.04% 1.07636716 18.139411 6.478 1.185 205.26179.02% 1.27444472 68.6899694 8.265 1.04 44.73355.88% 2.82035205 15.5991048 10.374 0.008 2313.8789.48% 622.3131 NA 24.761 -1.157 5.63
9199.76% 1.16716763 NA 15.692 -0.862 321.041.20763936 2.37186005 4209.04
1.77628547 16.8692579
Total SharehoCurrency Adj Interest Expe EBITDA(Earn BSales/Revenu Operating Inc20.66 100.0063 0.03 9.57 82.58 6.57
305.32 1364.28 24.97 170.1 502.85 128.42789.46 708.6232 46.96 34.47 414.36 -22.15532.74 503.1974 39.27 117.52 615.26 50.49152.75 129.8813 13.02 24.07 266.1 15.79
27.75 24.98617 2.07 2.14 52.82 0.981639.68 650.168 231.25 339.51 1037.93 187.66
0.35 0.713131 0.7 -2.7 0.01 -2.7105.75 3.489655 50.14 35.08 272.12 -2.49
3485.34516 3244.03
Net Income/NeDividends Pai Capital ExpenCash&Near CaChanges in WoIBES PEG Ratio8.33 0 -4.65 4.18 -1.58
71.42 -83.45 -55.28 2.17 -7.27 2.18895.14 0 -185.65 98.63 124.47
7.57 0 -76.23 13.11 -15.5111.73 0 -12.94 48.72 -21.44
3.08 -0.05 -4.93 2.4 2.23-105.7 -20.84 -146.24 36.64 42.09
-3.4 0 0 0.12 -0.58-173.92 0 -7.53 6.92 -24.26
212.89
IBES PEG Ratio
Ticker Exchange CodShort Name Industry SubgRaw BetaKCP US Equity KCP US KENNETH COLE-A Retail-Appare 1.007PLCE US EquityPLCE US CHILDRENS PLACE Retail-Appare 1.239AEOS US EquityAEOS US AMER EAGLE OUTF Retail-Appare 1.501BKE US Equity BKE US THE BUCKLE INC Retail-Appare 0.786ANN US Equity ANN US ANNTAYLOR STORES Retail-Appare 1.034JAKK US EquityJAKK US JAKKS PACIFIC Toys 0.788TOO US Equity TOO US TOO INC Retail-Appare 1.052CACH US EquityCACH US CACHE INC Retail-Appare 0.403ROST US EquityROST US ROSS STORES INC Retail-Appare 0.838ATVI US EquityATVI US ACTIVISION INC Entertainment 0.96JOSB US EquityJOSB US JOS A BANK CLOTH Retail-Appare 1.373GPS US Equity GPS US GAP INC/THE Retail-Appare 1.185THQI US EquityTHQI US THQ INC Entertainment 1.122TLB US Equity TLB US TALBOTS INC Retail-Appare 1.159CLE US Equity CLE US CLAIRE'S STORES Retail-Appare 1.116HAS US Equity HAS US HASBRO INC Toys 0.847ATAR US EquityATAR US ATARI INC Entertainment 1.286TTWO US EquitTTWO US TAKE-TWO INTERAC Entertainment 1.43BEBE US EquityBEBE US BEBE STORES INC Retail-Appare 1.044PSUN US EquityPSUN US PAC SUNWEAR CAL Retail-Appare 1.048URBN US EquityURBN US URBAN OUTFITTER Retail-Appare 1.374ANF US Equity ANF US ABERCROMBIE & FI Retail-Appare 1.253APII US Equity APII US ACTION PROD INTL Toys 1.04MAT US Equity MAT US MATTEL INC Toys 0.489HOTT US EquityHOTT US HOT TOPIC INC Retail-Appare 0.79CBK US Equity CBK US CHRISTOPHER & B Retail-Appare 1.537CHS US Equity CHS US CHICO'S FAS INC Retail-Appare 1.362ERTS US EquityERTS US ELECTRONIC ARTS Entertainment 0.551MVL US Equity MVL US MARVEL ENTERPRIS Toys 0.611
1.05764286
D/E EV/Sales EV/EBIT Std Dev Of Er Alpha Total Debt (S0.00% 0.73591133 7.05370518 7.389 0.439 00.00% 0.78781981 29.320959 9.58 0.501 01.49% 0.82244283 8.52894606 6.707 -0.208 20.580.00% 0.83085249 7.27717187 4.364 0.36 09.61% 0.85091783 8.70374046 5.23 0.633 121.650.02% 0.86691923 6.94476227 7.258 0.249 0.080.00% 0.88438714 7.41236634 6.166 0.231 00.00% 0.88861248 12.3834451 9.661 1.728 00.76% 0.8915984 9.52315649 4.105 0.837 250.25% 0.99169444 9.03471798 6.259 0.118 2.824.24% 1.02808454 12.6722481 8.365 2.31 10.52
20.16% 1.1656083 16.6383872 6.153 0.017 3395.770.00% 1.19834953 23.5229943 7.519 -0.17 05.39% 1.2105884 9.84999235 5.361 0.018 1008.53% 1.21359307 9.98818309 4.885 0.792 110.92
35.11% 1.29998722 16.695075 4.143 0.465 1080.1768.67% 1.37014175 68.6791746 14.416 1.032 236.21
0.02% 1.39215471 9.00703227 9.957 1.398 0.30.00% 1.40909361 10.9954476 8.066 0.087 00.42% 1.55359113 16.1859183 6.124 0.922 5.690.00% 1.57723832 14.6867291 7.852 1.766 00.00% 1.6486602 8.41553963 7.03 0.144 0
29.60% 1.66862815 -17.588982 12.946 1.156 2.569.51% 1.73760905 11.1968911 3.852 0.238 847.550.01% 1.87153299 15.2268172 6.309 0.681 0.120.00% 2.68403442 14.7676385 7.445 1.278 00.00% 4.07472652 20.2652683 6.196 1.093 00.00% 4.10526379 18.9529628 4.679 0.509 0
11.52% 4.70640027 21.5305033 8.901 2.185 150.960.09176204 1.62729696 5959.94
0.02% 1.21359307 11.0961693
Total SharehoCurrency Adj Interest Expe EBITDA(Earn BSales/Revenu Operating Inc164.9 410.2364 52.48 433.05 45.18
229.01 565.6001 53.78 671.41 18.04577.48 1377.299 191.75 1463.14 141.09264.67 426.2017 58.12 401.06 45.79714.42 1266.262 6.89 182.7 1380.97 135.01360.58 337.0923 47.9 310.02 38.7253.66 673.9053 2.35 96.14 647.46 77.25
45.29 187.4971 0 19.28 199.42 14.31643.19 3274.196 0 396.8 3531.35 330.62597.74 1139.673 0.93 207.14 864.12 94.85
65.65 248.1469 1.1 25.39 243.44 19.753658.21 16841.27 248.6 1793.51 14454.71 1012.63
408.87 708.7429 122.55 480.53 24.48567.68 1856.858 3.26 255.18 1595.33 196.07501.25 1300.022 4.43 160.31 1001.54 121.69
1191.37 3076.263 77.5 403.13 2816.23 219.29-115.33 343.9779 11.96 13.82 419.05 8.36356.44 1213.413 0.48 134.98 793.98 122.72180.54 569.2954 0 50.62 316.42 40.55302.39 1345.694 113.69 846.39 81.24224.38 738.9075 63.61 422.75 45.4749.53 3021.906 369.54 1595.76 312.62
3.21 8.649279 0.15 0.03 6.43 -0.611978.71 8908.301 113.9 950.07 4885.34 758.14
160.93 879.887 0.02 69.79 443.25 54.48143.3 917.5235 0 70.96 338.76 61.57
240.13 2172.878 122.94 531.11 106.791788.66 11140.25 0 629.3 2482.24 537.66
275.65 1310.179 41.67 71.14 299.05 65.3764949.9483 43575.26
Net Income/NeDividends Pai Capital ExpenCash&Near CaChanges in WoIBES PEG Ratio26.14 0 -7.27 91.55 27.39 0.987
8.93 0 -48.54 36.65 1.93 35.95688.73 0 -61.41 194.53 60.7 1.22432.06 0 -25.63 92.98 -1.36 1.18980.16 0 -45.45 212.82 113.28 1.20531.27 0 -6.59 68.41 12.7 0.85547.34 0 -39.74 101.3 66.73 0.978
8.94 0 -7.34 10.29 6.46 1.135201.18 -14.85 -133.17 150.65 70.33 1.121
66.18 0 -11.88 285.55 89.3 1.26510.95 0 -7.62 8.39 3.65 1.381
477.46 -78.35 -303.28 3388.51 1990.58 1.74512.99 0 -7.79 132.9 0.98 2.36
120.76 -20.61 -99.15 25.57 -11.31 1.17477.74 -7.58 -45.5 195.48 48.71 0.973
-170.67 -20.77 -58.66 495.37 -145.25 2.232-10.93 0 -8.57 6.03 5.4771.56 0 -10.47 108.37 104.76 0.64726.48 0 -21.95 123.43 26.41 1.53449.68 0 -40.42 36.44 30.41 1.30927.41 0 -22.25 72.13 60.19 1.269
194.94 0 -92.98 391.04 148.07 0.892-1.31 0 -0.1 0.48 -0.46230.1 -21.87 -167.39 1267.04 244.6 1.41834.63 0 -33.88 50.45 8.01 1.19338.48 0 -20.45 8.28 23.8 1.1166.76 0 -64.74 8.75 47.53 1.349317.1 0 -59.11 950 640.7 1.35322.61 0 -2.07 53.69 2.61 0.736
8567.08
IBES PEG Ratio
EBIT(2002) EBIT Avg (200Capital (2001 ROC Average ROCMedia Networ 1213 1319 26038 0.04658576 0.05065673Parks and Res 957 1237.33333 11305 0.08465281 0.1094501Studio Entert 620 384.333333 7879 0.07869019 0.04877946Consumer Pro 384 393 1125 0.34133333 0.34933333
Average ROC
Revenues: 2003 2002 2001 2000Media Networks 10,941 9,733 9,569 9,836Parks and Resorts 6,412 6,465 7,004 6,809Studio Entertainment 7,364 6,691 6,009 5,918Consumer Products 2,344 2,440 2,590 2,762
$27,061 $25,329 $25,172 $25,325 Operating IncomeMedia Networks 1213 986 1,758 1,985Parks and Resorts 957 1,169 1,586 1,615Studio Entertainment 620 273 260 126Consumer Products 384 394 401 386
3,174 2,822 4,005 4,112
Capital InvestedMedia Networks 25883 26038 20374Parks and Resorts 11067 11305 11369Studio Entertainment 7832 7879 6675Consumer Products 966 1125 1041
Capital expendituresMedia Networks 203 151 207 249Parks and Resorts 577 636 1278 1524Studio Entertainment 49 37 36 50Consumer Products 44 58 70 73
DepreciationMedia Networks 169 180 176 169Parks and Resorts 681 648 604 582Studio Entertainment 39 46 47 54Consumer Products 63 58 90 109
