Foremost on the mind of office investors is whether a slowing economy will eat into the rent growth needed to
justify historic high prices that buyers have paid for office buildings.
Not exact matches
I am not sure that these
historic averages were
justified even for a company as great as Garmin, however you are buying with a margin of safety based on P / E and taking into account the company's superb balance sheet,
high returns on capital, and
high margins.
At that point, I'll have to decide whether it's fairly valued — or whether management will reinvest cash & ultimately raise RoE back to
historic levels (20 %, for example), which would obviously
justify a far
higher valuation.