Corporate Finance: Instructor\'s Manual Applied Corporate Finance

Aswath Damodaran 524

Disney Valuation

! Model Used:

• Cash Flow: FCFF (since I think leverage will change over time)


• Growth Pattern: 3 - stage Model (even though growth in operating income is only
  10 %, there are substantial barriers to entry)

While Disney is a large firm, its brand name (especially in children’s

entertainment and theme parks) will allow it to earn excess returns and maintain

high growth for a longer period.