At 8 times earnings, Cabela's is very cheap. Earnings have grown earnings every year for the past 10 in a steady and compelling manner. Peak earnings were realized on only 60% of their current store base. Thus if the economy returns to its former health and Cabela's returns to its former operating margins profits would be 66% higher. Today's price would represent 5 times that level of earnings. Furthermore, their price to book value is 0.85 meaning a worst case bankruptcy could even yield a reasonable return for investors.
