How do you figure a 70% discount? DIS trades at roughly 23 times earnings and TWX trades at roughly 18 times. I agree TWX is undervalued but not at the level you're stating, if you're using a different comparison, please elaborate.
Yes, you are right, at the time I posted it was around a 40% discount to DIS, that is still pretty huge. Must have made a mistake when I typed the numbers on the calculator. Still thought it was pretty large discount, own both stocks and I seem to recall they usually trade at around a similar PE and free cash flow ratios. There seems to be some real divergence in valuation between the two companies and I love TWX more than DIS so I am a bit confused, maybe I am missing something with DIS,