GMCR sold for 20-27 times cash flow during 2007 thru' 2009. At current price of 93 it is selling at 30 times cash flow. Moreover 1st qtr 2010 qtr cash flow was only 22.9 MM$ whereas 1st qtr 2009 Cash flow was 24.915 MM$. Does this stock deserves 30* cahflow valuation with decreasing cash flow?
GMCR is a great company to own at current price if it doubles its cash flow every year for next five year - but if falters then watch out - I will buy AAN at less than 2 times cash flow any time over GMCR