But I can’t think of any good reason they shouldn’t trade at maybe 8-9 times forward earnings in a normal year.
Even if people think there is no growth, that’s what dead-enders might trade for, right?
At the moment, that would equate to $14.50 - $16.30 for LYLT, up 287% to 335% from here.
For BFH, that would be $95.70 - $107.70, up 150% to 180% from here.
It might take a few years for the mood to change, of course.
Plus, forward earnings estimates change sometimes. Sometimes the changes are even warranted.
If there is material deterioration in either business (BFH or LYLT, the market hates both), then discretion advised.