Oct 14 Realogy's IPO last week was one of the
biggest smashes of the year. Only Facebook Inc and
Santander Mexico Financial Group were bigger.
The IPO, with shares soaring 22 percent during the company's
market debut, was a bet on the housing rebound as well as a
victory for private equity firm Apollo Global Management LLC,
which took Realogy private at the peak of the housing boom in
But shares in the Parsippany, New Jersey-based company,
which owns real estate brokerages such as Coldwell Banker and
Century 21, "look overpriced," according to a story on Sunday in
As noted in Barron's, the company is valued at $4.4 billion
and carries $4.5 billion in debt.
"Put a still-generous multiple of 11 on next year's
projected cash flow and Realogy's stock is valued at around
$27," said Barrons. "That's 20 percent below current levels."