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Can Disney's Valuation Support A Sustained Move Past $100?

Disney (DIS) reported another stellar quarter with revenue rising 9% year-over-year to $13.4 billion, diluted EPS up 23% to $1.27, and free cash flow up 55% to $857 million. As a result of the strong earnings report and strength across all segments, the stock rallied around 6% and opened above $99 per share. Standing back and looking at Disney, it appears the company can't miss and its assets continue to deliver. However, even though the company blew away Wall Street expectations for the quarter, Disney's valuation is becoming a little expensive at face value and deserves a closer look to see if the company can sustain this success.

Not only is Disney at a 52-week high, but it's also at its all-time high. Over the past year the stock is up over 40% and over the past 5 years the stock has appreciated over 220%, which is nearly triple that… Read More …