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Notices
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Nicolas Rabener (not verified)
4th April 2019 | 10:42am

Hi Jonathan, we only selected stocks larger than $500 million in market capitalization as companies below that to tend to be more problematic, i.e. are fallen angels, recently IPOed stocks, etc, and don't represent typical PE targets, i.e. stable cashflows that can be levered . Naturally $500m today are far less than $500m in 1990, so we could enhance the analysis by adjusting for inflation.