Growth only has value if you earn returns greater than your cost of capital.
If CLH makes a 10-11% ROE it is debatable whether growing the company would increase its value.
In CCP's case 23% ROE with growth has significant value.
The question is whether CLH can increase its ROE over time... through operational efficiencies or other competitive advatnages... then only it would be worth considering.
CCP Price at posting:
$18.03 Sentiment: Buy Disclosure: Held
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