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Exact(12)
Mr. Bronchick, the analyst, speculates that investment bankers didn't wanted to take the offer at such a high valuation.
So why did Wall Street slap such a high valuation — up to 25 times earnings — when their own businesses generate such abysmal multiples?
It may find it hard to win back the faith among investors that allowed it to go public at such a high valuation.
And since the company last raised money at such a high valuation, there are very few suitors that could afford to acquire it.
That the company could sell at such a high valuation in part reflected a general expansion of multiples in the bull market, but it also reflected investors' conviction that Microsoft had become a sure thing.
And the market placed such a high valuation on Pacific Century Cyberworks, a company founded by his son, Richard Li, that Mr. Li the younger was able to take control of Hong Kong's principal telephone company.
Similar(48)
Wynn is hoping a high valuation through the Hong Kong listing will lift valuations at its other divisions.
Do not be swayed by a high valuation, especially if it's higher than you expected.
A high valuation, based on replacement cost, may be essential for an investor.
A high valuation makes exports more expensive.
Growth stocks typically have a high valuation because investors expect rapid growth.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com