Is Walt Disney Stock Built to Withstand More Downside?

Walt Disney (DIS) stock is down 7.4% in a day. The recent slide reflects renewed concerns around leadership succession and streaming challenges, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?

Before judging its downturn reslience, let’s look at where Walt Disney stands today.

• Size: Walt Disney is a $187 Bil company with $96 Bil in revenue currently trading at $104.45.
• Fundamentals: Last 12 month revenue growth of 3.5% and operating margin of 14.2%.
• Liquidity: Has Debt to Equity ratio of 0.25 and Cash to Assets ratio of 0.03
• Valuation: Walt Disney stock is currently trading at P/E multiple of 15.2 and P/EBIT multiple of 13.5
• Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 115% within a year. See DIS Dip Buy Analysis.

These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell DIS Stock

That brings us to the key consideration for investors worried about this fall: how resilient is DIS stock if markets turn south? This is where our downturn resilience framework comes in. Suppose DIS stock falls another 20-30% to $73 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.

2022 Inflation Shock

• DIS stock fell 60.7% from a high of $201.91 on 8 March 2021 to $79.32 on 4 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $124.01 on 30 June 2025 , and currently trades at $104.45

 
2020 Covid Pandemic

• DIS stock fell 42.1% from a high of $148.20 on 2 January 2020 to $85.76 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 24 November 2020

 
2018 Correction

• DIS stock fell 16.3% from a high of $115.84 on 27 April 2017 to $96.93 on 12 October 2017 vs. a peak-to-trough decline of 19.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 6 August 2018

 
2008 Global Financial Crisis

• DIS stock fell 57.3% from a high of $36.55 on 8 May 2007 to $15.59 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 21 April 2010

 
Feeling jittery about DIS stock? Consider portfolio approach.

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