Given this timing and uncertainty of the outcome of the appeals process, we are reluctant to respond to requests we have for breakup valuation. But using just a 'back of the envelope' valuation, based on current revenue multiples for comparables to each business unit, we would assign a 15x revenue multiple to the Windows business unit and a 17x revenue multiple to the applications business.
Quotes about multiples (16 Quotes)
It takes a long time, but because of inflation, world terror and a more stop-and-go business cycle, we think PE multiples will be in a slow eroding phase, ... That means the market will be more of a cyclical trading market than a sustainable bull market, meaning you've got to buy when things look cheap and sell when they look expensive.
There are great big multiples of kids who are studying the European languages, but when we think about our economy, and the new markets we are expanding into, it is time to recalibrate some of our attention.
I can virtually guarantee at today's value levels, no matter what, over multiple years they will rise. The world's greatest companies are trading at below- average multiples when they're wildly above-average companies.
I don't think anybody goes out there not knowing what to do, ... I don't think anybody doesn't know they didn't do it right after it happens. I just think that you are talking about a lot of different multiples and adjustments that have to occur. They happen quickly in the game and I think the more repetition you get on things like that, the more confidence the players gain in their ability to adjust.
In the near term, we believe Juniper is in the early stages of a transition from a secular to a cyclical growth company, which keeps our rating equal-weight despite an attractive valuation relative to historical multiples. Over the next several years, we think Juniper is well positioned for a spending cycle driven by bandwidth demand, security, and the convergence of services onto IP networks.
I know we bought multiples of them, but you can put them away or just wear them around the house.
We know it's easy to get swept away in a growth market, ... But I've been in this business more than 25 years and I've watched investors figure out a way to justify incredible multiples, only to see valuations collapse back to the underlying worth of the company. We are value investors, and at these prices, we aren't going to buy names like Microsoft.
We maintain a bullish view, however predicated on indications that the fourth quarter is tracking inlineslightly ahead of expectations, an upward bias to fiscal 2006 earnings estimates, the fact that investors are beginning to look at and discount fiscal 2007 estimates, which make valuation multiples more palatable, and further consolidation into the New Year.
AIG trades at a market multiple, and it is indeed the best insurance company in the world, in my opinion. But financial stocks rarely, if ever, trade at market multiples,
It seems to be the biggest concern is inflation, and the impact on (priceearnings) multiples and dividend yields. Unfortunately, there aren't enough inflation beneficiaries in the stock market.
While the company has seen no negative trend in its bookings activity, the Nortel remarks suggest a downturn is inevitable, although probably not until the first quarter of 2001. Unfortunately, stocks selling at more than 100 times multiples don't fare well in the face of any negative trend.
So, I think when you're at that sort of multiple level, there's very little you can do to fulfill the expectation and an awful lot that can happen that will disappoint investors and give you significant downside risks, ... Having said that, a lot of stocks in the tech sector are trading at multiples that are within a coffee cup visit of their growth rate. And I think that might make a whole lot of sense.
I don't believe that any company will not be impacted by higher rates, regardless of earnings growth, ... but there's more downside for those companies with lofty priceearnings multiples.
Add in the fact that these five negative events started when large-cap growth was at historical highs put that together with the valuations, and you can start to explain why it's done so poorly. Multiples have compressed, growth is hard to come by, and people have been averse to risk. When will large cap growth start to work I think the answer is when we stop having a major negative event every year.
This event highlights once again the difficulty in determining earnings for derivative transactions. It also encourages those who feel that bank accounting in this area is weak. It is a reason why many large banking companies have such low multiples on their stock.