O'Connor said: The stock is trading at the lower end of its valuation range and we are relaxed with our buy recommendation.
He sells shares when prices approach the high end of historical valuation ranges, or when a company is no longer benefiting from the trends he sees.
If the hammer price exceeds the guarantee, which is usually at the lower end of the valuation range in the sale catalogue, the seller and the auctioneer share the difference.
At the lowest end of the valuation Clydesdale would be sold at 0.56 times book value, which is considerably lower than the average UK bank – whose shares trade at 0.76 times book value – and much lower than some of its rival challenger banks.
"What we are seeing across the UK is the greatest price momentum is for houses that are towards the upper end of the valuation spectrum".
On the low end of the valuation range, SaaS startups outside of Silicon Valley without access to a vibrant angel community might raise $200,000 to $500,000 on a $2 million to $3 million capped note".
According to Janney Montgomery Scott analyst Mitchell Pinheiro, packaged food stocks are currently trading at a 30% premium to the S&P 500, and 20% above the typical high end of the valuation for this group.
"While we don't expect the stock's longer-term overhangs relating to Dell's impact on the industry's business model to disappear, a better performance in the consumables space will go a long way towards resolving shorter-term concerns, enabling the shares to begin to move back towards the higher end of their valuation range," Goldman said.
So rounds tend to be "range bound" where prices at the top end of the valuation spectrum often being done in boom markets (i.e. 2007, 2011) and for the hottest of companies test the top end of the range, and in bad markets for fund raising (2003, 2008) test the bottom end of the range.
Officials with William Blair and the city have said $1.2 billion was on the high end of their valuations.
