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David Einhorn exits Peloton position as valuation gaps widen
Einhorn’s DME Capital Management fully exited Peloton in Q2, with the article citing a 44.8 trailing P/E versus a 19.3 forward multiple.
Yahoo Finance highlights that David Einhorn’s DME Capital Management completely exited its Peloton position in the second quarter, while also adding stakes in Warner Bros. Discovery, PayPal, and Fortune Brands during that period.
The piece frames the Peloton move as part of Einhorn’s broader portfolio rotation and points to Peloton’s recent volatility, attributing part of that to deteriorating earnings in prior quarters and higher valuation multiples.
It notes that Peloton is trading at a forward multiple of 19.3 times, while its trailing P/E is 44.8 times, arguing the gap suggests expectations are elevated and that the stock may not be as inexpensive as some investors assume.
The article concludes that, with differing trailing and forward valuation measures and concerns about earnings growth, Einhorn may have viewed Peloton’s risk-reward as less attractive going forward.