Joe Friday

Greenhill's Skill of Lifting Talent Is Golden

At 50x trailing eps, GHL is trading at bubble levels. Note that their earnings are not,for the most part, predicitable or recurring but rather will always depend on the vagaries of their advisory business. The one recurring reveneue stream they have is their capital management business which generates income from the management of a series of partnerships. All of those partnerhships have lockup periods that will start to come to an end in the next year or so...Given the poor performance of all of these funds, one would expect redemptions from most investors at the first opportunity.
The book value of the company is approximatley 6 dollars a share.
At 12x book and 50x eps I would not be long GHL.
for a more detailed analysis see seekingalpha.com/artic...