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But investors do not know what the future range of such valuations will be.
"We believe valuations will be higher for broadcast properties," Catherine J. Mathis, a spokeswoman for The Times, said.
The higher cost of capital will apply to all French firms; their valuations will be lower than their peers' in investor-friendly places; and they will find it harder to issue shares to pay for expansion or takeovers.
Having said that, when the economy begins to grow at a sustainable, foreseeable rate, leverage will be more attainable, valuations will be more robust and shareholders will want the opportunity to take money off the table, including through larger LBOs.
The real problem for equity valuations will be if we continue in this low growth world for many years.There we have it; if bond yields are justified by low growth, equity valuations in the US are not justified.
Buckle up, valuations will be a bumpy ride. .
Similar(42)
Analysts now suggest the valuation will be lucky to be more than $10 billion.
If everything is sold at the same time, the assets' mark-to-market valuation will be considerably lower.
If investors continue to believe that G.E. is worth forty times earnings, the new valuation will be four hundred and eighty billion dollars.
And of course Twitter's valuation will be considerably lower: perhaps twelve or fifteen billion dollars instead of a hundred billion.
Yet by historical standards, its price-earnings basis, the most fundamental measure of stock valuation, will be well above average.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com