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The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and televi...
The following section summarizes insights on Walt Disney Company's Rule of 40:
We've identified the following companies as similar to Walt Disney Company because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to Rule of 40 in the efficiency category include:
A ratio that measures a company’s combined growth rate and profit margin. Many venture capital and growth equity investors believe this ratio should e...
Rule of 40 measures a company’s combined growth and profit margin. Many venture capital and growth equity investors believe this ratio should exceed 40%, especially for software companies.
Rule of 40 = Levered Free Cash Flow Margin + Revenue Growth
Applying this formula, Walt Disney’s Rule of 40 is calculated below:
Levered Free Cash Flow Margin [ 9.1% ]
(+) Revenue Growth [ 4.0% ]
(=) Rule of 40 [ 13.1% ]
The tables below summarizes the trend in Walt Disney’s rule of 40 over the last five years:
| Date | Levered Free Cash Flow Margin | Revenue Growth | Rule of 40 |
|---|---|---|---|
| 2020-10-03 | 5.5% | −6.1% | −0.6% |
| 2021-10-02 | 3.0% | 3.1% | 6.1% |
| 2022-10-01 | 1.3% | 22.7% | 24.0% |
| 2023-09-30 | 5.5% | 7.5% | 13.0% |
| 2024-09-28 | 9.4% | 2.8% | 12.1% |
Read More: Hacking Software’s Rule of 40
The chart above depicts the distribution of rule of 40 for companies operating in the Communication Services sector in the Developed economic region. Over 1,050 companies were considered in this analysis, and 1,013 had meaningful values. The average rule of 40 of companies in the sector is 6.5% with a standard deviation of 76.3%.
Walt Disney Company's Rule of 40 of 13.1% ranks in the 55.7% percentile for the sector. The following table provides additional summary stats:
| Economic Risk Region | Developed |
| Total Constituents | 1,055 |
| Included Constituents | 1,013 |
| Min | -424.6% |
| Max | 505.3% |
| Median | 9.3% |
| Mean | 6.5% |
| Standard Deviation | 76.3% |
You can find companies with similar rule of 40 using this stock screener.