Our Take on Recent Reporting on Biglari (BH)

By Ken Smith • Friday, December 02 12:10 • Permanent Link

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.