Post #326 by mungofitch on the Falling Knives board

Investment Strategies / Falling Knives

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LKQ at $46.15.

It has started to behave better than the broad market rather than worse, so on a relative basis versus the average large US firm the price seems (?) to have bottomed out about a month ago. That's sometimes the moment to look at falling cutlery: after the first bounce off the floor.

But the valuation still seems quite reasonable, if you believe the basic business has a future. For whatever it's worth, current price is about 10.5 times consensus earnings for next year. Figures over 20 were the norm in the years before the pandemic.

Jim
No position

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