Remind us again - it's "Buy Low and Sell High?"
U.S. stocks have become too costly for mergers and acquisitions, according to Niels C. Jensen, chief investment officer at Absolute Return Partners LLP.
As Bloomberg reports, the U.K.-based investor cited the S&P 500 Index’s ratio to earnings before interest, taxes, depreciation and amortization, or Ebitda, in a monthly letter published Tuesday...
"Interesting M&A deals are likely to be few and far between" with the price-to-Ebitda ratio at more than 11, he wrote. The indicator peaked at 11.35 as an Internet-driven bull market of the 1990s was ending... it's at 11.27 today!!