Jack
Just a note first: as it is near year end, some sites will still report forward P/Es using 2023 estimates, and some will have already shifted to 2024 estimates. CSU is 41X 2023 numbers, and 33X 2024 forecasts. Both are actually close to or lower than 10-year historicals (41X to 78X). For SHOP, 2023 P/E is 107X, 2024 is 72X. 10-year multiples are not so helpful as the company has been historically unprofitable and has only been public for eight years. 2020 to 2022 multiples ranged from 136X to more than 500X. If we look at price/sales instead, the range for SHOP is 10X to 57X, versus 12X based on 2024 sales forecasts. One, then, could argue that both stocks are cheap, especially in a 'interest rates may drop' type of market. SHOP results have been historically more volatile. 20% sales growth is expected next year. CSU growth is similar, but it typically gets a premium valuation over similar companies (we would not really consider SHOP a peer) because of its exceptional predictability and execution. The bottom line, on the assumptions that a) one has a decent timeframe and b) one expects a positive market in the next few years, we would be comfortable buying either today.