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How Much Is 'Star Wars' Really Worth To Disney?

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How Much Is 'Star Wars' Really Worth To Disney?

With Wednesday's annual "Star Wars Day" lingering on our minds, we thought we'd take a look at how much value the brand has for Walt Disney Co (NYSE: DIS).

Lucky for us, NYU finance professor Aswath Damodaran asked that same question. He took a look at past box office success as well as historical revenue from streaming/rental, gaming, merchandise, books and television. He also projected future earnings and adjusted for inflation for each of those segments.

Damodaran estimated the four remaining planned "Star Wars" films to earn $6 billion combined at the box office, $4 billion from the two remaining trilogy films, and $2 million from the spinoffs.

Related Link: How To Watch 'Star Wars: The Force Awakens' For $1 On A Legitimate Netflix Competitor

This success, plus Disney's strong track record of monetizing large brands, lands Damodaran at an estimate of just under $10 billion.

Here's Damodaran:

"I am not a fan of acquisition-driven growth, primarily because the process so often leads to over paying for growth, but Disney may have found an acquisition model (albeit a limited one) that works with its Star Wars and Marvel acquisitions. In both cases, the company bought established movie franchises and has used its merchandising machine to generate value."

Regardless of all that, investors seem to think the force is with Disney on this one. The day after Disney announced the $4 billion acquisition of "Star Wars" from Lucasfilm on October 30, 2012, the stock opened at $51.15.

It closed Thursday's session at 104.93.

Posted-In: Aswath Damodaran Star Wars Star Wars: The Force AwakensNews Education General Best of Benzinga

 

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