New Disney CEO Faces Big Opportunity to Boost Undervalued Shares

Some Positive News About Disney's Parks

When Josh D’Amaro took over the CEO position at Walt Disney (DIS)  last month, he replaced a legend.

From the time Robert Iger became CEO in October 2005, until he stepped down as Disney’s executive chairman at the end of 2021, shares of the media giant climbed from $24 to $154, for a gain of 541%.

It was a Disney-like fairytale ending to a storied career. However, the sequel to this story wasn’t as popular.

After Disney shares suffered sharp losses in his absence, Iger re-took the helm in November 2022. When his second tenure ended four years later, the share price was virtually unchanged.

Today, Disney shares are down 11% year-to-date, with a cumulative 47% loss over the past five years.

Experience Matters

D’Amaro comes from the Disney Experiences side of the business. If you’ve visited "Star Wars: Galaxy’s Edge" at one of Disney’s theme parks, you’ve seen his influence.

In the quarter ended in December 2025, Disney Experiences generated a record $10 billion in revenue, a 6% year-over-year increase. That figure is equal to 38% of the parent company’s total revenue.

However, the unit was responsible for a whopping 70% of Disney’s operating income, making it one of the company’s primary profit drivers.

Is Disney Undervalued?

If D’Amaro can bring that same magic to Disney's helm, the company could potentially trade at a higher multiple. Disney currently trades at about 14x earnings, well below the S&P 500’s 25x figure. 

If Disney traded at a multiple similar to that of the S&P 500, the stock would climb to nearly $180. 

However, there’s no reason to anticipate a higher valuation for Disney right now. Looking at its competitors, Fox Corp. (FOX)  trades at a similar valuation to Disney, while Comcast (CMCSA) , home of NBCUniversal, is currently valued below 6x trailing earnings.

Let's Go To The Chart

Technically speaking, Disney has been in an aimless, sideways range between $78 and $126 for the past four years. Theoretically, the stock’s long basing period could lead to a massive run. 

Much like a Disney protagonist, the stock first needs to escape from its captor — in this case, a four-year consolidation pattern (shaded yellow). Right now, it's difficult to envision a catalyst that will push the stock above $126 and out of that zone. 

Overdue for a Storybook Ending

Disney has an incredible, successful history. It doesn’t need to reinvent itself. I’m hoping that under D’Amaro, the company will focus on its uncanny ability to delight audiences by making amazing stories come to life. 

Also, I'd like to see Disney stop running its best franchises into the ground. Disney owns some of the world’s most valuable intellectual properties, but still generated box office flops like "Solo: A Star Wars Story," "The Marvels" and "Indiana Jones and the Dial of Destiny."

A Long-Term Winner?

In the long run, Disney’s victories far outnumber its losses.

Disney’s many massive wins stem from its ability to tell a great story. Disney already has the formula for success. Like a hero in a fairytale, Disney just needs to remember its true identity. 

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At the time of publication, Ponsi was long DIS.