Owen

Four Long-Term Winners Selling at Deep Discounts

Good article! I'm a Graham-and-Dodd man myself, so it's good to see some serious fundamental analysis. However, not sure whether THI will be able to maintain a P/E of 20. This is the same reasoning that made analysts two years ago forecast SBUX at $50 based on a "traditional forward P/E of 35". High P/Es make sense when a business has room for many years of above-market expansion, but once the business matures and gets closer to saturating its market, these P/E shrink very quickly to where you'd expect them based on the standard discounted cash flow model.