Q: hi,
im seeing a very high P/E on CSU right now. can you compare the current P/E and the forward P/E with historical averages. If possible can you include the ranges for these ( ie highest and lowest historically). can you comment on your thoughts about the current and future P/E being reasonable or not, and why? finally, are you comfortable punching shares at this price?
cheers, Chris
im seeing a very high P/E on CSU right now. can you compare the current P/E and the forward P/E with historical averages. If possible can you include the ranges for these ( ie highest and lowest historically). can you comment on your thoughts about the current and future P/E being reasonable or not, and why? finally, are you comfortable punching shares at this price?
cheers, Chris
5i Research Answer:
CSU is 43X trailing earnings and 38X forward earnings. Over the pas decade, the average has ranged from 42X (2016) to 78X (2022). The actual high/low range over the decade is 33X (2016) to 93X (2021). Based on history, we would consider the valuation decent. 2022 was the only year in which the stock has ever declined (-15.8%), other than in 2008 during the financial crisis (-4.2%). We would be comfortable buying, based on the growth outlook, its solid history, positive momentum and an expected decent stock market backdrop.