Disney Cruises Primer - A Pirate's Life for Me

Research evidence excerpt

Disney Cruises Primer - A Pirate's Life for Me

Media, Entertainment & Telecom

Diversified Entertainment - Market Weight

WALT DISNEY (DIS) May 14, 2026

Disney Cruises Primer - A Pirate's Life for Me Rating:

Outperform

The Wolfe Byte Price: $104.90

We expect Disney's $60B plan to invest in parks and cruise ships to enhance Price Target:

growth and ROIC. Disney's cruise business will account for ~40% of Experiences OI $134

growth from FY'25-FY'27. This primer, incl. 22 exhibits, explains why we're bullish. % Upside:

27.7%We rate DIS Outpeform, PT $134.

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Why cruises matter to the stock: Our DIS bull case foresees EPS and multiple upside Company Information

from Experiences expansion capital after a half-decade in which losses on streaming 52-Week Range $92 - $124

and COVID constrained Experiences investment. Between FY’20 and FY’24, Disney’s Market Cap. (MM) $182,160

Experiences capex annually totalled $2-3.5B, barely above period segment D&A Enterprise Value (MM) $234,163

Shares Out. (MM) 1,736.5

of $2.4-2.7B. In 2024, a Disney Investor Day in Orlando launched a 10 year, $60B Avg. Value Traded (MM) $863.66

plan to expand Experiences. In FY25, Experiences capex scaled to ~$6B and will be SI% of Float 1.4%

$7B+ in FY26. Experiences capacity growth should produce robust and sustainable Price Performance

EBIT/EPS growth in the coming years. We are particularly excited about the cruise YTD LTM

contribution. See below for a deep dive into the Disney cruise business. DIS (5)% 17%

S&P 500 8% 31%

Cruise economics: Disney cruises delight consumers. In return, Disney Cruise Lines

earns best in class ROIC. Disney operated only 6 ships during FY'25, launched 2 130125

earlier in FY'26, and will launch 5 by 2031. We estimate that the 2 ships launched 120