In this mad scramble for growth, Euronext has destroyed the RoE and margins. Unless all the fangled synergies of Borsa Italiano are so enormous that they would magically restore Euronexts' RoE to pre-acq levels, you have think this as a horrible capital allocation. The stock's low P/E is a reflection of this and with RoEs resetting structurally lower, the P/Es too have reset structurally lower versus peers. Hence it is no use comparing it to LSE or Deustsche Bourse etc and bemoaning its optical cheapness
Fantastic research mate. Thanks for sharing. Keep up the good work.
solid! thanx a lot
Still don't know why I sold them a couple of months ago ._.
In this mad scramble for growth, Euronext has destroyed the RoE and margins. Unless all the fangled synergies of Borsa Italiano are so enormous that they would magically restore Euronexts' RoE to pre-acq levels, you have think this as a horrible capital allocation. The stock's low P/E is a reflection of this and with RoEs resetting structurally lower, the P/Es too have reset structurally lower versus peers. Hence it is no use comparing it to LSE or Deustsche Bourse etc and bemoaning its optical cheapness