In the latest installment of "Ask a Fool," Austin Smith responds to the question, "Is L Brands as overpriced as it seems?" In a word, no. Consider the company's flagship brand, Victoria's Secret. Same-store sales increased 3% in the past quarter, and that was on top of a previous year of excellent same-store-sales growth. The company earns 20% on invested capital and enjoys enviable sales per square foot in the retailing business. While the company sells at 20 times earnings, given that there's no real competition in sight and that L Brands has a big moat, Austin says that earnings multiple isn't all that bad.

See more in the following video.