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Published byΚαλλιστώ Φραγκούδης Modified over 5 years ago
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Earnings per share of the Walt Disney Company 2004-2015
By Ms. Russell
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Why Disney? I LOVE Disney World…. A lot
So much, that I think I should buy stock in Disney World, since I spend a lot of money there anyways I want to see how much return I can expect on my investment, if I were to buy Disney stock
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Earnings per share of the Walt Disney Company 2004-2015
Year Actual Return 2004 $ 2005 $ 2006 $ 2007 $ 2008 $ 2009 $ 2010 $ 2011 $ 2012 $ 2013 $ 2014 $ 2015 $
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Earnings per share of the Walt Disney Company 2004-2015
Year Actual Return Predicted Return Residual 2004 $ $ $ 2005 $ $ $ 2006 $ $ $ 2007 $ $ $ 2008 $ $ $ 2009 $ $ $ (0.64) 2010 $ $ $ (0.66) 2011 $ $ $ (0.48) 2012 $ $ $ (0.17) 2013 $ $ $ (0.23) 2014 $ $ $ 2015 $ $ $
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The Regression y = x The regression line tells us that for every additional year that I hold the stock (I don’t sell it), that I can expect a $0.31 return on my money, per share of stock I own R² = The R2 tell me that 86.41% of the variability in my stock return, can be explained by the model 13.58% is explained by other variables, such as a recession, and new major Disney attraction opening or a disaster at a Theme Park
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Conclusion In conclusion, while there is a strong, positive correlation between the year and earnings per share, I may want to reconsider purchasing Disney Stock. Since I can only expect an additional $0.31 per share (pulled from the regression line equation), I may want to purchase stock in a company with a higher return.
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Conclusion Upon further research, I discovered that I would receive much more earnings per share with the following stocks, instead of Disney: Auto Zone - $40.70 Google - $25.81 American Airlines - $10.59
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Conclusion I’ll still be visiting Disney World every year….
….but won’t be a share holder
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