The margin gap betwee Lenskart and EssilorLuxottica tells you everything about why this valuation is stretched. Expecting a regional player with 1.95% margins to somehow achieve margins twice that of the global leader while capturing a third of a market that might not even grow as projected is pretty optimistic. The comparison to EssilorLuxottica's 11.8% on $29.9B revenue really puts things in perspective.
Thanks for putting this together - it seems that there is a need to relieve some of the demand pressure from the market. Should institutional/ retail investors be given a freer hand to allocate to global opportunities than they are allowed currently?
2. I will be reporting your substack to the regulators - Substack like this lead me to believe that I understand valuation and P/E whereas the trick is - YOU make it so simple!
The margin gap betwee Lenskart and EssilorLuxottica tells you everything about why this valuation is stretched. Expecting a regional player with 1.95% margins to somehow achieve margins twice that of the global leader while capturing a third of a market that might not even grow as projected is pretty optimistic. The comparison to EssilorLuxottica's 11.8% on $29.9B revenue really puts things in perspective.
Thanks for putting this together - it seems that there is a need to relieve some of the demand pressure from the market. Should institutional/ retail investors be given a freer hand to allocate to global opportunities than they are allowed currently?
1. numbers are stupid
2. I will be reporting your substack to the regulators - Substack like this lead me to believe that I understand valuation and P/E whereas the trick is - YOU make it so simple!
Thank GOD I am a subscriber.
These numbers are positively insane!