Q: When 5i wrote the report on PRL the share price was $15.65 ..... Today it is $23.60 . Which is a considerable rise since the report was written ...... Could 5i plug in the current share price into the section titled " Valuation " and calculate and reassess the same statements using the current share price ? ....... This will help me make a decision regarding a purchase at the current share price .... Thanks as always for your valuable analysis .....
5i Research Answer:
While we cannot fully replicate the relative valuation table for PRL due to time constraints, PRL today trades at 10.7X forward earnings, which trades in line with its peer, GSY, and slightly above the average of its peers. Even with the rise in its earnings multiple, its next quarter results (in early May) could include a raise in its forward guidance, which would compress its current valuation. Overall, given its valuation and recent results, we continue to like the name at current levels.