What are your thoughts on the current valuation of this company?
Do you believe there is still a significant runway over the next 15-20 years?
Thanks
CSU is trading at 24X Forward EV/EBITDA; it is not cheap compared to its historical valuations of 16x to 24x, but the company has continued to demonstrate its ability to execute and operate in both high-growth and challenging environments. Its valuation multiples have gradually expanded over the years, given the company’s consistent execution. CSU has been one of the best operators as a serial acquirer, and now CSU’s size has become large. In effect, it has become a victim of its own success. Going forward, the returns may not be as attractive as in the past. However, we think CSU will do just fine as an investment, we feel investors are better off averaging into CSU over time and we would be quite comfortable with CSU as a long-term holding.