2min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

TIP522: Unconventional Wisdom From The Greatest Minds In Investing w/ Joseph Shaposhnik

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

What Metric Should Investors Focus on if It's Not the PE Ratio?

North Start is a $50 billion company and its PE is sitting at $75, which is pretty high for I think no matter what kind of business you're looking at. So that's kind of an interesting point about its cheapness, if you will with a 4.5% free cash flow yield multiple. With constellation today as we look at the market and we look at rates, we tend to think that the current multiple or the current yield of 4.5%, it continues to be something that is attractive.

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