What is happening right now is why high multiple stocks are risky.

Some companies trade at high multiples because business is booming and investors get excited. Companies do not trade at high multiples when business prospects are poor. However, when a high multiple business creates any doubt about the strength of the business, a large valuation premium can vanish very, very quickly. If a poorly performing business trading at a low multiple (e.g. WEN) announces weak results, the downside for the stock is limited by the already depressed valuation and lack of investor excitement. The only thing that will really hurt the stock price of such a business is financial distress. This is why value investing focuses on looking at the downside first. A high multiple stock contains lots of potential downside because a small bit of bad information can have a large impact on the stock price.