Thanks for your help.
The high multiple could be a headwind for prospective returns going forward, but with that being said, we think equity multiples, in general, are dynamic. The market does not simply place a higher valuation multiple on just any company unless it finds some favourable attributes that are sustainable, like the company has demonstrated consistent execution over the years, top-class management, strong competitive advantages that are hard to replicate, etc. which we think CSU checks all the boxes. In other words, we think CSU’s higher valuation multiple makes sense.
Although, in the event that CSU's multiple contracts to its historical average, this would represent a 45% drawdown. We feel there would have to be a significant change in its fundamentals or execution to warrant this type of drawdown.