RB Global just had a sentiment reset. The stock slumped about 14% to US$95.63 after the Q2 print, even though the headline story was solid volume and earnings progress. Gross transaction value reached US$4.7b and grew in the double digits, while adjusted EBITDA and adjusted earnings per share each advanced by 6%.

Coming into today the stock had already slipped over the past month, which meant expectations were no longer euphoric. The sharp single-day drop now appears to be driven less by collapsing fundamentals and more by investors assessing valuation and what a slightly softer take rate could imply for future profitability.

Is RB Global now an overhyped growth stock at 43.8x trailing P/E, or is the market missing what the cash flow…