Showing posts with label Bill Ackman. Show all posts
Showing posts with label Bill Ackman. Show all posts

Thursday, July 19, 2012

How large would JCP be if it grew by 10-15x?

In an interesting moment yesterday, Bill Ackman said that he believes that he could realize a 10-15x return on his JC Penney investment.  In order to get a sense of what this means, below is a table comparing the market caps of other US retailers to JCP.  If JCP were to increase 10x from its current $4.3B market cap, that would make it the 4th largest retailer in the US.  To increase by 15x would make it the 3rd.  To be a 10 bagger, Ackman has to believe that JCP wont just beat the Kohls, Macy's, Sears and TJ Maxx's of the world, but also be bigger than Target and Costco too.