How the Global Health Crisis Has Affected Disney's Overall Value

With the Disney parks temporarily closed and people staying home around the world, Disney’s business sectors have also been impacted by the latest events.

Diminished crowds before Walt Disney World’s closure in March

In a recent report, Wells Fargo analysts predicted just how severely the different aspects of Disney’s business could be affected over the next few months.

The best Disney businessman ©Disney

Before the Disney parks temporary closures, Wells Fargo projected that Disney would earn $331 billion in the next 12 months. Following the park closures and delays in film releases, they projected a value of $244 billion over the next year. That is a 26% value decrease just from the closures. After stock prices went down last month, the current enterprise value of Disney is $213 billion.

Disneyland Entrance

With the parks closed for the foreseeable future, it’s difficult to predict when their value will go back up. The Wells Fargo analysts believe that Disney parks will not bring in revenue through out the rest of Disney’s fiscal year, which ends on September 30th. They predict that even when that parks re-open, there will be low attendance and probably won’t reach more than half-capacity for the next year. They also stated the parks could take two years for attendance to fully recover.

Twitter / @DisneyParksNews

The report looked at other areas of Disney’s business and found that almost every area has experienced a decrease in value. Disney Studios took a target enterprise value hit from $94.8 billion to $73.8 billion. Not surprising with the parks being closed, this sector took a cut from $66.7 billion to $22.9 billion in target EV value.

©Wells Fargo and Business Insider

One of the few areas that actually had an increase in value was the streaming platform, Disney+. With the steady addition of new content and the early addition of popular new films like Frozen 2 and Onward, it has been a great few months for Disney+. The service was valued at $46.7 billion before the closures and now is now valued at $54 billion.

@Disney

We are interested to see how the extended closures of the parks and movie theaters affects Disney’s business areas and we will be sure to keep you updated as we learn more!

What do you want to see added to Disney+ next? Let us know in the comments.