valuation

According to another long-running measure, the Tobin’s Q, the market is more than twice average valuations.

The analysts view the valuation as undemanding, noting JDL’s strong net cash position to fund the purchase.

Concerns that an AI bubble is forming have mounted in recent days, following warnings from the Bank of England and the International Monetary Fund that valuations appear stretched.

“And the market has yet to fully rerate company valuations in relation to those earnings.”

The historically high valuations are not a concern, they argue; once the third-quarter earnings season really kicks into gear next week investors will be proven correct to be so optimistic, they reckon.