Aswath Damodaran 147
Disney’s bottom up beta
Business
Revenues
in 2002 EV/Sales
Estimated
Value
Firm
Value
Proportion
Unlevered
beta
Media
Networks $ 10 , 941 3. 41 $ 37 , 278. 62 49. 25 % 1. 0850
Parks and
Resorts $ 6 , 412 2. 37 $ 15 , 208. 37 20. 09 % 0. 9105
Studio
Entertainment $ 7 , 364 2. 63 $ 19 , 390. 14 25. 62 % 1. 1435
Consumer
Products $ 2 , 344 1. 63 $ 3 , 814. 38 5. 04 % 1. 1353
Disney $ 27 , 061 $ 75 , 691. 51 100. 00 % 1. 0674
EV/Sales = (Market Value of Equity + Market value of debt - Cash)/Sales. The
number reported here is the average across the comparable firms.
