Why is KKD trading at a 6.36 price to book ratio? The industry average is 2.64. I know that it must mean people believe in the growth of the company but isn't that really high? Just looking for an explanation. Thanks
Makes sense but also makes it hard to really judge the value of a company compared to it's peers. I would think that the book value would be the base and then the expected future growth would determine the premium over book value.