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Value After Hours S04 E09: Devolution of Returns by Decade, Change to Acquirers Multiple, Calloway

The Acquirers Podcast

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The Relationship Between Margin and Multiple

In the 22 years from 19 99 to 20 21, you ended up with a hundrd hundred, 36 % total sales growth. The margins expanded by 67%, which gave you like two point four% annualized return. Multiple actually shrunk over that time period of by 17%. So all told, that gets you to seven point five % total return over that 22 years. That's kind of what you would expect for equities, right? Like, that's sort of a long run returnad it just goes to show you, like, beginning, starting valuations.

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