There was a lot of apprehension (including mine) about negative surprises emanating from the merger but the last analyst call and the results and concall from yesterday have alleviated such concerns to a large extent. The book value per share is ~553 and the annualized rate of earnings per share is ~89. This means that price to book at current market price of 1540 is ~2.8 and PE multiple is ~17.3 both of which are close to what they were at the height of the pandemic.
In other words, even after clarity on most aspects of the impact of the merger having emerged, the stock is trading at multiples (in terms of PB and PE ratios) that are close to their peak pandemic panic values. Is there something significant that am I missing here?
Disclosure: invested for a long term, recently added more.
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