Originally Posted by
BlackPeter
Well, yes - but this is only if you accept the underlying hypothesis.
And obviously - while both SUM and RYM operate in the same industry (i.e. SP will be correlated), there is absolutely no reason for the market to keep their relative share prices in any particular ratio band.
Over time the share price will follow earnings - and given that SUM's forward PE is at current 10.4 (at a PE CAGR of 20) and RYM's forward PE is 14.5 (at a PE CAGR of 15) is it fair to assume that the market will over time either appreciate SUM or depreciate RYM (or, as I think - appreciate both, but SUM more than others ;);