- Dec 2, 2011
Low interest rates can translate to higher PEs as investors chase better returns than owning debt.
Young, growing companies have higher PEs.
Grill makers might be similar to consumer discretionary, light manufacturing, consumer staples, and/or durables like appliances (although Whirlpool has bought nearly every domestic based competitor).
50x is high, but most equity securities are right now as well. The revenue history might be a good metric as Weber isn’t a new company, just newly public. I’m not sure about the other… I didn’t drill down to find their brands.