Is Pershing Square (PS) Priced Too Richly For Its Sales?

Pershing Square has almost doubled year to date, which puts a spotlight on a simple question for anyone watching the stock. Do today’s levels still line up with what the business is generating in sales, or has the price moved ahead of the underlying top line? The stock has gained 96.9% year to date. As a result, the valuation debate now focuses on how much sales power can reasonably be attached to that move. The firm’s model as an investment vehicle means fee income and performance-related...