Originally Posted by
homer985
No way will this stock ever be able to support an EV of $35BB. It's future FCF estimates and earnings potential would never support it.
Hype and speculation? That was when no one knew about these companies or what their true potential could be. Their earnings potential (if it ever becomes trusted by the street again) will be well known by then, removing speculation. Furthermore, hype will be a non-factor too, barring a major change to the business model. These companies are not relatively young and unknown anymore. XM has traded for coming up on 10 years now and Sirius much longer. The hype and speculation was compounded by a strong bull market and the unknowning of what the companies could be. If Sirius XM are able to turn things around -- compounded by the current bear market -- their potential will be very evident, thereby removing the speculation and hype.
I'm sorry, but an EV of $35BB is just not supported, given the current busines model.
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