The Bear Case for a Public Company

I think in order to get good double-digit returns over the next five years, you have to assume that they continue to trade at 25 to 30 times earnings. Then they continue to grow free cash flow per share north of 15% a year. If it starts to trade at 15 or 20 times, you've obviously got that's going to be a hindrance to returns. The other thing I think's worth mentioning is that it's traded at 30 times on average earnings since it's gone public.

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