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Exact(53)
Equity values are stretched.
So are current profit margins (and hence equity values) sustainable?
When equity values climb, executives sell appreciated shares and use the proceeds to pay off loans.
"I would guess that equity values are not only not overvalued but may still be undervalued".
"Not only are they not doing the research, they have totally lost track of equity values.
Yet that is not a very satisfactory explanation for such a violent lurch in equity values.
Similar(5)
The conclusion is that positive equity value is greater than zero equity value.
It was $1.6 trillion in equity value, not $2.8 trillion.
The equity value of the deal is $419m, with the rest made up by debt.
Assuming this pace continues, HCA should create equity value over time.
(Macmillan was the last, after Sargent learned that potential damages could far exceed the equity value of the company).
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