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Cocktails and Cannabis. Plus, Peltz’s Disney Slideshow.

Barron's Streetwise

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Is Disney Going to Cut Prices at the Parks?

The Disney stock has been cut in half. Does that make it a good deal now? I think it makes it a fair deal. You can't go buy this year's free cash flow because I think free cash flow is depressed, right? Now you can look ahead a couple of years from now, the consensus estimate has the company getting back from $4 billion in change of free cash flow to a little over $10 billion. So that number, Disney stock market value is about 18 times that number, which for a company of Disney's quality, that's fair. The only thing is the S&P 500 trades at 18 times free cash flow based on estimates that are a little closer

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