Any thoughts on current level? It looks attractive. What bothers me is that there is hardly any insidership. That's why I put them back again and again.
I think at the current price level it is starting to get interesting. After re valuing the company I would like to see the company stock price fall a bit more before I go in. As for the insider ownership that has never crossed my mind to be honest. I get your concern because of incentive etc but management so far has done well to execute on their strategy and I don’t see that changing anytime soon.
Just on the "5-Year Average PE Ratio", given this is a valuation measure, isn't it illogical to compare the average 5 year PE ratio against a benchmark, as more relevant is the current valuation, and (perhaps) historical valuation levels. E.g. if a high quality company has often traded at an optically high valuation level (say 30x), but is currently at 14x due to a temporary issue, it would fail your criteria and yet may be very attractive.
Great article. On the valuation side, I would say to not be too conservative. Its common practice to reduce long term growth rates in DCFs to 3% or here 7% but sometimes it makes no common sense from a business perspective if they can continue to acquire or if the TAM is very big. It changes the valuation a lot.
I would look at cyclicality (covid boost, industry?) but it is hard to figure out in details sometimes.
Any thoughts on current level? It looks attractive. What bothers me is that there is hardly any insidership. That's why I put them back again and again.
I think at the current price level it is starting to get interesting. After re valuing the company I would like to see the company stock price fall a bit more before I go in. As for the insider ownership that has never crossed my mind to be honest. I get your concern because of incentive etc but management so far has done well to execute on their strategy and I don’t see that changing anytime soon.
Interesting blog.
Just on the "5-Year Average PE Ratio", given this is a valuation measure, isn't it illogical to compare the average 5 year PE ratio against a benchmark, as more relevant is the current valuation, and (perhaps) historical valuation levels. E.g. if a high quality company has often traded at an optically high valuation level (say 30x), but is currently at 14x due to a temporary issue, it would fail your criteria and yet may be very attractive.
Thanks. I will take that into consideration
Great article. On the valuation side, I would say to not be too conservative. Its common practice to reduce long term growth rates in DCFs to 3% or here 7% but sometimes it makes no common sense from a business perspective if they can continue to acquire or if the TAM is very big. It changes the valuation a lot.
I would look at cyclicality (covid boost, industry?) but it is hard to figure out in details sometimes.
Thank you for your comment I appreciate the feedback. I understand your point of view! You make sense
Thanks I appreciate it. Yeah it does deserve a closer look. It’s a solid company I’m just waiting for it to come down in price.