To obtain the beta for Disney, we have to estimate the weight that each business is of Disney as a company. The value for each of the divisions was estimated by applying the typical revenue multiple at which comparable firm trade at to the revenue reported by Disney for that segment in 2003.38 The unlevered beta for Disney as a company in 2003 is a value-weighted average of the betas of each of the different business areas. Table 4.8 summarizes this calculation.

Table 4.8: Estimating Disney's Unlevered Beta


Revenues in 2002


Estimated Value

Firm Value Proportion

Unlevered beta

Media Networks


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