Neither a borrower nor a lender be?

The FT reported that PE firms in Europe are paying 10.4x EBITDA now, versus 9.7x in 2007. The US PE prices look to be about 9.1x versus 9.6x in 2007. Debt ratios are 5.6x versus 6.1x in the good old days. 2007, eh? We recall the Bear Stearns conference call back then, when virtually no one knew what was coming over the next 13 months. Compared to 2007, the economic fundamentals do not seem as good today. What do these high PE prices portend?

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