With the S&P 500 making new all-time highs again this year, it’s getting increasingly difficult for value investors to find cheap stocks. However, CLSA analyst Vasily Karasyov believes he has found a great value buy in Walt Disney Co DIS 1.4%.

In a new note, Karasyov points out that Disney is currently trading at its lowest forward PE ratio (around 15x) since 2009. Despite Disney’s cheap share price, the stock is down more than 11 percent in 2016. Karasyov believes Disney’s underperformance won’t last for long.

“We think that the current valuation combined with green shoots in the media space, such as advertising strength, the launch of next-generation distribution platforms and the direct-to-consumer ESPN-branded offering, can lead to a re-rating,” Karasyov explains.

In light of Disney’s 2016 woes, CLSA has lowered its price target for the stock from $115 to $108, but the firm maintains its Outperform rating.

In terms of a re-rating catalyst, Karasyov is watching for an improved outlook among pay-TV peers. He notes…

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