Sep 22, 2008 14:17
16 yrs ago
French term
United Kingdom
à très forte décote sur les ratios d'acquisition
French to English
Bus/Financial
Investment / Securities
I'm somewhat stumped by this phrase, found in an investment fund commentary:
"L'offre de XXX sur YYY prouve l'intérêt stratégique du platine pour les mineurs diversifiés. L'autre cible du secteur est ZZZ qui se traite ***à très forte décote sur les ratios d'acquisition*** de YYY."
I don't really understand what this is saying... ZZZ's shares are trading at a very heavy discount...????
Thanks in anticipation!
"L'offre de XXX sur YYY prouve l'intérêt stratégique du platine pour les mineurs diversifiés. L'autre cible du secteur est ZZZ qui se traite ***à très forte décote sur les ratios d'acquisition*** de YYY."
I don't really understand what this is saying... ZZZ's shares are trading at a very heavy discount...????
Thanks in anticipation!
Proposed translations
(English)
| 4 +1 | at a big discount to the acquisition multiples for YYY |
rkillings
|
| 4 | Yes |
Bourth (X)
|
| 1 | ZZZ is being traded based on the acquisition ratios of YYY at way below par rating |
MatthewLaSon
|
Proposed translations
+1
15 hrs
Selected
at a big discount to the acquisition multiples for YYY
The 'multiples' are the ratios of the XXX's offer price on YYY to YYY's revenue, earnings, whatever (you don't need to know in order to translate this bit).
So, if XXX is offering 2x annual sales for YYY, when ZZZ is trading at just 1.5x, then XXX is offering a big premium for YYY based on where ZZZ is trading, and ZZZ is trading at a big discount to what XXX is offering for YYY.
So, if XXX is offering 2x annual sales for YYY, when ZZZ is trading at just 1.5x, then XXX is offering a big premium for YYY based on where ZZZ is trading, and ZZZ is trading at a big discount to what XXX is offering for YYY.
Peer comment(s):
| agree |
Bourth (X)
: You have such a way with words ...
2 hrs
|
4 KudoZ points awarded for this answer.
Comment: "Thanks, Bob, for explaining this so clearly - I kind of had the idea but couldn't find a clear way to express it. Thanks also to Bourth and Matthew for your help."
2 hrs
ZZZ is being traded based on the acquisition ratios of YYY at way below par rating
Hello,
Just a guess, Rob. I hope I don't lead you astray. LOL.
Just a guess, Rob. I hope I don't lead you astray. LOL.
5 hrs
Yes
Not a discount as such, but ZZZ's shares are trading very cheaply compared to the ratios (share prices etc.) used to compute the price being offered for ZZZ, or, more correctly, the price per share determined FROM the acquisition price offered. Of course to determine cheapness one has to compare the relative market worth of ZZZ and YYY.
The sort of thing Le Journal des Finances throws at me all the time!
--------------------------------------------------
Note added at 5 hrs (2008-09-22 19:30:44 GMT)
--------------------------------------------------
IOW, if the intrinsic values of YYY and ZZZ are compared, and assuming the price-per-share equivalent offered for YYY is realistic and representative of that intrinsic value, then the current share price of ZZZ is way below what it should be.
The sort of thing Le Journal des Finances throws at me all the time!
--------------------------------------------------
Note added at 5 hrs (2008-09-22 19:30:44 GMT)
--------------------------------------------------
IOW, if the intrinsic values of YYY and ZZZ are compared, and assuming the price-per-share equivalent offered for YYY is realistic and representative of that intrinsic value, then the current share price of ZZZ is way below what it should be.
Discussion
So what you're saying is that ZZZ's shares are trading at a discount to YYY's P/E ratio - which is being taken as an indication of current market expectations as to price in this sector?