Disney stock falls 52% below 2021 peak as valuation lags Netflix

Disney shares have dropped about 52% from their March 2021 record and are now trading at a price‑to‑earnings (P/E) ratio of roughly 15.4. Although the company’s overall business remains solid, its cable‑network segment still generates about 10% of revenue and 17% of operating income, limiting valuation. In addition, Disney’s capital‑intensive theme‑park and cruise operations tie up cash that could otherwise fund higher dividends or share buybacks.

Netflix shares are also about 50% below their June 2025 peak, but the streaming‑only company trades at a higher P/E of approximately 21.3, creating a 38% premium over Disney. Analysts say the market rewards pure‑play streaming businesses more highly. Technical analysis notes that Disney recently reversed from a 100‑point resistance level and could test support near 95 points.