Disney trades at a trailing P/E of about 16.5, far below Netflix's 23.1, because investors still value Netflix as a pure-play streaming leader while treating Disney as a complex media conglomerate in transition. Netflix reported second-quarter 2026 revenue of $12.56 billion, up 13.4% year over year, with a 33.4% operating margin and over 325 million paid memberships, reinforcing its premium. Disney's fiscal third-quarter 2026 revenue reached $25.2 billion, up 7%, with total segment operating income rising 21% to $5.6 billion and streaming achieving a 13% operating margin, yet its multiple remains compressed by concerns over linear TV decline and capital-intensive parks and experiences businesses. Disney's market cap is around $180 billion versus roughly $300 billion for Netflix, even though Disney generates more total revenue. The discount reflects skepticism that Disney's streaming gains can fully shine through the noise of its other segments.
