Sanjay Bakshi Replies To A Mail From A Friend On Valuation

Sanjay Bakshi Replies To A Mail From A Friend On Valuation by Fundoo Professor Begin forwarded message: From: Sanjay Bakshi <sanjay> Subject: Re: question Date: 11 April 2015 10:11:48 GMT-4 To: XXXX I don’t think in terms of entry multiples. I do think about exit multiples though and never value a business at more than 20 times owner earnings ten years from now. And I only limit to high ROE, low leverage businesses (most of my portfolio businesses are debt-free) which can grow earnings where return on incremental capital is high. Under those conditions, no matter what the entry multiple,…