If only I had that power!
You seem to have more experience investing in the retail sector. Most of the reports I've seen seem to think that a PE multiple of 7-8x is appropriate for a business growing at 15%pa (based on comps). This (to me) makes no sense based upon fundamental valuation theory.
I've tried to look back at historical data on the PE ratio of consumer discretionary and retail stocks, and just about everything I have seen so far suggests the long run average is >15 for these businesses, but I am not confident on the data collection methodologies.
This is in fact, in keeping with some of the other retailers listed in Australian (particularly staples, online etc).
What are your recollections on long-run PE multiples for consumer discretionary?
Ann: ADH Trading Update and Stores Re-opening, page-42
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