First of all, thank you for your insightful analysis of Leon’s and for sharing your research.
I had a quick question regarding the 1.037 growth factor used in your intrinsic value calculation. When I calculate the increase in the P/E multiple from 12x to 15x over four years, I arrive at an annual growth rate of approximately 5.74% rather than 3.7%. I was wondering if there is a specific reason why you used 1.037?
great stuff
Hi Adam,
First of all, thank you for your insightful analysis of Leon’s and for sharing your research.
I had a quick question regarding the 1.037 growth factor used in your intrinsic value calculation. When I calculate the increase in the P/E multiple from 12x to 15x over four years, I arrive at an annual growth rate of approximately 5.74% rather than 3.7%. I was wondering if there is a specific reason why you used 1.037?
Thanks again!
How do you look at underlying ROIC? Thanks.
Store level, or consolidated?