What’s the expectation here?
Compared to historical data, valuations do not seem attractive. Median EV/EBITDA for 5Yr or 3Yr period is 21. Currently, EV/EBITDA stands at 18. So, reversal to mean (R2M), if it happens, upside is limited to ~15%. But, R2M may happen in a horizon of 0 to 5 Yrs. In case it takes more than a year, return expectation must be very-very low.
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