Q: Hi Team,
What are your thoughts on the company's current valuation and it's future prospects?
Do you believe this could be a long term compounder? Would you be comfortable buying it here?
Thanks,
What are your thoughts on the company's current valuation and it's future prospects?
Do you believe this could be a long term compounder? Would you be comfortable buying it here?
Thanks,
5i Research Answer:
GIB.A is a high-quality consulting company. The company is trading at 19.8x Forward P/E, which we think is a fair valuation (not too attractive to add aggressively to or too expensive to sell). GIB.A has a track record of capital allocation that is shareholder-friendly. GIB.A is a mature and stable business, growth going forward is expected to be in the range of 3%-5% organically. GIB.A does have a track record of acquisitive growth over the years. We think it could compound capital in the range of 12%-15% in the foreseeable future.