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 signs that attendance at U.S. theme parks may soften in the coming months. 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 resilience, 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 a debt-to-equity ratio of 0.25 and a 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 a portfolio approach.

Why Stock Pickers Win More With Multi-Asset Portfolios

Markets move differently, but a mix of assets smooths volatility. A multi-asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.

The asset allocation framework of Trefis’ Boston-based wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’s strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices