For example, over the last ten years BMY has historically commanded a price-to-cash earnings multipleof between 23.6x and 34.7x, but the currentmultipleof cash earnings is less than half the low end of that range at just about 11x.
Gurus didn't mind the multipleof 22 times current-year earnings and bought into the company, which grew second-quarter EPS by 27% on a year-over-year basis.
We think the WDAY business model has significant upside potential, but initiate coverage of the stock at Equal Weight as the currentmultiple already discounts many of the investment positives.
