What Is ESPN Worth? Not Enough to Make Disney Stock a Buy, This Analyst Says.

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Walt

Disney

It’s going to give investors a clearer picture of ESPN’s financials. KeyBanc analyst Brandon Nisple said the details may come as a disappointment.

Disney

(Ticket: DIS) is undergoing a restructuring under CEO Bob Iger and will become an independent division of ESPN. For the first time, all of its financing will come from its DC-wide entertainment business, just as the company seeks outside investors to help prepare for the future stream of sports broadcasters.

KeyBanc’s Nispel did the math and put ESPN’s value at about $30 billion, but argued that the broadcasting giant is struggling. The last transition Being primarily a streaming service.

The assessment is based on a low single-digit percentage growth forecast for ESPN’s annual revenue of around $16 billion. Nispel put ESPN’s operating income margin in the low 20s, forecasting annual earnings before interest, taxes, depreciation and amortization to reach $3.79 billion.

The estimate is likely below current consensus estimates, Nispel said. Analysts at Wedbush recently suggested.

Apple

( AAPL ) should look to acquire ESPN for around $50 billion to supplement its own streaming service.

“We don’t believe it will happen

Apple

He will get the business as prices continue to decline in the future,” KeyBank’s Nispel wrote.

Nispel said ESPN’s outlook could be further damaged if a dispute with Disney were to occur.

Charter Communications

(CHTR) continues.

He set a sector weight rating on Disney stock with no price rating. Disney shares were flat at $81.64 in premarket trading and are down 6 percent so far this year.

Write to Adam Clark at [email protected]