The Wall Street Journal is wondering about Sotheby’s stock price, which has doubled in the last six months to $33:
There still may be time to bid. Analysts appear too cautious, estimating sales will rise only about 20% in the second half. But after a less-severe downturn ending in 2003, Sotheby’s sales jumped 60% in 2004. A similar increase in sales this year implies the stock is trading in the teens as a multiple of earnings, well below the average of 20 to 25 times during the art boom last decade.
Sotheby’s Is Set for a Run Up (Wall Street Journal)