Agree with you. I find it fascinating that a company that has grown revenues by 12% CAGR over the last 10 years is currently valued at 111x earnings. Sales have been inline, and margins are only 3% lower than recent average - not the case of suppressed earnings leading to high PE. Waiting for their Q2 results/earnings call to prove their might. Maybe it’s a good company currently being valued as a ‘great’ company?
If valuations return to normalcy (say 60x) even 15% growth might not amount to any significant returns in the next 5 years.
Insights welcomed.
Invested.
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