Our Take on Recent Reporting on Biglari (BH)

BH investors were likely spooked this afternoon by Wall Street Journal's report: "After a decade long standoff, activist Sardar Biglari has a toehold at sagging the restaurant chain. It might not help." For more coverage, read the full article here. On the back of this news, Biglari sank -2.0% to a price of $142.8. Are the markets overreacting?

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) ratio of 3.11. In contrast, Biglari has a trailing 12 month P/E ratio of -1.2 and a P/B ratio of 0.2.

Biglari has moved 3.9% over the last year compared to -10.2% for the S&P 500 -- a difference of 14.1%. Biglari has a 52 week high of $167.39 and a 52 week low of $110.56.

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