How Sensitive Is Disney’s Stock Price To U.S. Theme Parks Attendance?

+2.56%
Upside
121
Market
124
Trefis
DIS: Walt Disney logo
DIS
Walt Disney

Theme Park and Hotels account for 27% of the valuation of Disney (NASDAQ: DIS). Out of this segment, U.S. business accounts for than 80% of the valuation. U.S. business drives majority of its growth from Theme parks rather than hotel business. Revenue’s  from U.S. Theme Parks are dependent on theme park attendance and per capita spending per guest. Growth rates of theme park attendance have varied between -1% to 7% since 2007. As per our current estimates the sensitivity of Disney’s stock price to a 1% change in theme parks attendance is 2%. Hence, it is a very important factor in Disney’s valuation.

disney-sensitivity- theme Park Final

 

[1] 2015 Top Markets Report: Travel and Tourism, International Trade Commission,July 2015

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Have more questions about Disney? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively.

For precise figures, please refer to our complete analysis for Disney

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