Who the fuck is crazy enough to buy shares of Disney?
Current PE is about 130 and forward PE is higher than 30. That's completely crazy. It's not an high-tech stock selling stuff like there's no tomorrow.
A lot of people (including me not so long ago) thought that Disney was super expensive. However, it appears that it's a case where current PE doesn't say everything.
The answer is simple: Disney has been badly hurt by COVID. The stock is currently so "expensive" because earnings decreased a lot during COVID.
Here's DIS EPS from 2015 to 2021. As we can see, if Disney's earnings go back to 2018 level, the stock would today be sold for less than 18 times earnings.
That's a company that should grow by more than 30% on an annual basis given estimates. Let's be conservative and let's say that earnings will "just" grow by 15%. Even with that growth rate, a PE of 18 is low for such an high quality stock.
As we can see by yesterday's results, the company is doing great with parks and Disney +. Expectations were beaten by a wide margin.
It's now possible to pay a very reasonable price for Disney if we look 2-3 years in the future. That's probably why some investors are super bullish on that stock (Pat Dorsey put 11% of his portfolio on Disney. He's usually super bullish on very high growth stocks).