Aswath Damodaran 532
Disney: Value of Equity per Share
! Subtracting out the market value of debt (including operating leases) of
$ 14 , 668. 22 million and the value of the equity options (estimated to be worth
$ 1 , 334. 67 million in illustration 12. 10 ) yields the value of the common stock:
! Value of equity in common stock = Value of firm – Debt – Equity Options =
$ 38 , 804. 48 - $ 14 , 668. 22 - $ 1334. 67 = $ 22 , 801. 59
! Dividing by the number of shares outstanding ( 2047. 60 million), we arrive at
a value per share o $ 11. 14 , well below the market price of $ 26. 91 at the time
of this valuation.
Note that we use the actual number of shares outstanding since we have
considered the value of equity options explicitly.
