If you would invest 89,600
in The Walt Disney Company on November 10, 2013
and sell it today you would earn a total of 3,900
from holding The Walt Disney Company or generate 4.35%
return on investment over 30
days. The Walt Disney Company is generating 0.21% of daily returns assuming 0.63% volatility of returns over the 30 days investment horizon. Simply put, 6% of all equities have less volatile historical return distribution than The Walt Disney Company and 94% of equity instruments are likely to generate higher returns than the company over the next 30 trading days.
Daily Expected Return (%)
Assuming 30 trading days horizon, The Walt Disney Company is expected to generate 1.4 times more return on investment than the market. However, the company is 1.4 times more volatile than its market benchmark. It trades about 0.33 of its potential returns per unit of risk. The S&P 500 is currently generating roughly 0.22 per unit of risk.
Based on recorded statements The Walt Disney Company has Operating Margin of 21.2%. This is 471.93% lower than that of Services sector, and 184.16% lower than that of Entertainment - Diversified
industry, The Operating Margin for all stocks is 570.07% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.