Chart showing Median Acquirer’s Multiple (EV / EBIT Operating Income) and Rolling 12-Month Returns in the Large Cap 1000 Universe (1999 to 2018) | Value Investing News

Chart showing Median Acquirer’s Multiple (EV / EBIT Operating Income) and Rolling 12-Month Returns in the Large Cap 1000 Universe (1999 to 2018)

  • The chart above shows the median acquirer’s multiple (LHS) in the largest 1000 US-listed stocks and ADRs each quarter since 1999 versus the subsequent 12-month returns for the universe (RHS, inverted).
  • The relationship isn’t particularly predictive (R-squared is 0.12).
  • The median acquirer’s multiple right now is 20.11.
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