Walt Disney Company (The) (DIS) vs Home Depot, Inc. (The) (HD): Which Is the Better Buy in 2026?
As of 2026-08-03, DIS is undervalued at $96, with a DCF intrinsic value of $47922709210 and a margin of safety of 100%. HD is undervalued at $332, with an intrinsic value of $153632661065 and a margin of safety of 100%. Of the two, DIS has the wider margin of safety.
Risks
- ⚠PEG ratio of 2.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠High leverage (4.48x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠11 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $96?
What growth rate is the market pricing in at $332?
Economic Moat Score
Learn more →Insufficient data for Economic Moat Score calculation (requires 3+ years).
Insufficient data for Economic Moat Score calculation (requires 3+ years).
Forensic Accounting
Learn more →Insufficient data for Beneish M-Score calculation (requires 2+ years).
Insufficient data for Beneish M-Score calculation (requires 2+ years).
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: DIS vs HD
Is Walt Disney Company (The) or Home Depot, Inc. (The) more undervalued in 2026?▼
Based on our discounted cash flow model, DIS trades at a 100.0% margin of safety (intrinsic value $47922709210 vs. price $96), compared to HD's 100.0% margin of safety (intrinsic $153632661065 vs. $332).
Which stock has higher return on invested capital, Walt Disney Company (The) or Home Depot, Inc. (The)?▼
HD earns 20.2% ROIC versus DIS's 7.3%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.