Even applying a reasonably generous valuation on the business, to reflect the assumption that ICON will bounce back to
its LT average margin, it's obvious that the market has opted for a rosier scenario...
stock, and I'm reasonably confident it will revert to their peak /
average Operating Profit
Margins, I'll actually price it at a P / S Ratio that reflects an
average of current and peak (or
LT average)
Margins.