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<blockquote data-quote="pretzel_man" data-source="post: 786299" data-attributes="member: 927"><p>If we were still private, our stock would be about 1/4 to 1/3 LOWER than today.</p><p> </p><p>While most people think this is not true, here is the logic.</p><p> </p><p>As a private company, UPS ran a Price to Earnings (PE) ratio of about 12 to 15.</p><p> </p><p>As a public company, we are running between 18 and 21. I think we are currently about 20.</p><p> </p><p>If we were private and valued at a 15 PE (which is high), we would be about 1/4 less than public. At a 13 PE (about the average), we would be 1/3 less than today.</p><p> </p><p>Of course, this is assuming that earnings as a private company would be the same as a public company. One could argue that it would be higher or lower....</p><p> </p><p>Even though the stock would be lower as a private company, I would have preferred that. The stock would be a safer investment and would have at least seen slow / consistent growth instead of 10 years of no growth.</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 786299, member: 927"] If we were still private, our stock would be about 1/4 to 1/3 LOWER than today. While most people think this is not true, here is the logic. As a private company, UPS ran a Price to Earnings (PE) ratio of about 12 to 15. As a public company, we are running between 18 and 21. I think we are currently about 20. If we were private and valued at a 15 PE (which is high), we would be about 1/4 less than public. At a 13 PE (about the average), we would be 1/3 less than today. Of course, this is assuming that earnings as a private company would be the same as a public company. One could argue that it would be higher or lower.... Even though the stock would be lower as a private company, I would have preferred that. The stock would be a safer investment and would have at least seen slow / consistent growth instead of 10 years of no growth. [/QUOTE]
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