GHL

Greenhill & Co Inc

Finance/Real Estate


Presented:01/09/2019
Price:$26.73
Cap:$0.55B
Current Price:$14.99
Cap:$0.28B

Presented

Date01/09/2019
Price$26.73
Market Cap$0.55B
Ent Value$0.90B
P/E Ratio161.71x
Book Value$2.98
Div Yield0.75%
Shares O/S20.51M
Ave Daily Vol345,971
Short Int17.62%

Current

Price$14.99
Market Cap$0.28B
Greenhill & Co., Inc. is an independent investment bank, which engages in the provision of financial advice on significant mergers, acquisitions, restructurings, financings and capital raising to corporations, partnerships, institutions and governments globally. The company was founded by Robert F. Greenhill in January 1996 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Evercore Inc (EVR), Greenhill & Co Inc (GHL)

Highlights

The presenter is short shares of boutique M&A advisory firm Greenhill & Co (GHL) at $26, noting the use of leverage for buybacks, market share loss, and macro risk (i.e., volatility impacting deal volume in 2019) as reasons to be concerned about the outlook for the firm. GHL is in the midst of a recapitalization plan, and has been aggressively buying back shares; however, if EBITDA comes in below Street estimates as a result of a slower M&A market, the rich valuation could collapse, and the stock could trade down 5 - 10 points (anywhere from 20% - 40% downside over the next 6 - 12 months).

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Idea Discussion

Commentor 1 - 2 weeks ago

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