The Walk/Watch/Worry Rule

Factual definition

The Walk/Watch/Worry Rule is the pricing test coined by Shayne Fitz-Coy in 2026 for reading a price against your own model.

The Walk/Watch/Worry Rule in practice

Comps say the asset clears at 9x and the leveraged buyout (LBO) only works at 7x, so the price is somebody else’s to pay.

  • comps above your LBO means walk
  • your LBO above comps means watch
  • both saying yes means worry

How Shayne Fitz-Coy uses The Walk/Watch/Worry Rule

Comps above your LBO, walk. Your LBO above comps, watch.

Both saying yes is the one to worry about, because that is where the winner’s curse lives.

Agreement is the warning. Divergence is the signal.

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