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Given Yahoo's difficulties, analysts have been loath to assign the company a particularly high earnings multiple, potentially pegging the core business at just $5 billion or so.
"It was priced at a very high earnings multiple, leaving little upside for investors in the short term," Constine says.
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Many of those stocks were trading at very high earnings multiples that are hard to justify if growth is slowing.
We would not be surprised to see a bid from a north American asset manager that is trading on high earnings multiples, has surplus capital and has stated its intent to diversify geographies and product exposures.
Given the lackluster growth projected for tech earnings in the next few years, and the still high earnings multiples ratios they command, this group should continue to underperform.
If these companies really can weather this, they should finally get the respect and high earnings multiples theyve been demanding all these years.
And, says retail analyst Bakay, there would be a higher earnings multiple.
In July Millbrook sent a letter to Dan arguing that his company was undervalued, citing the higher earnings multiple at a European rival.
U.S. same-store sales were strong, but even if domestic trends remain at current rates, "though that would be impressive, we do not think it would be enough to drive significantly higher earnings, multiple, or share price".
The stock, which was up more than 50% in the last 52 weeks, trades at a much higher earnings multiple than the energy stocks that the gurus were buying.
On average, we have found that high-reputation companies have higher returns (both Return on Assets and Return on Equity), deliver higher earnings multiples, have higher market/book ratios, and have a higher Enterprise Value/EBITDA ratio – the key measures on which investors assess corporate performance.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com