CSL Chart, page-1055

It's incredibly simple - but apparently far beyond the comprehension of many CSL holders.

Due to downside risk a company needs to make considerably better returns than bonds to make it a worthwhile investment. The current bond rate is 5%. That means the maximum acceptable p/e is only 16.

The current p/e of CSL is 33. That means ether the price has to drop by 50% or profit growth has to be~10% every year for the next decade to maintain the current share price. Thats' why the future growth is already 'priced in'. Unless there is some massive unexpected improvement there is no plausible reason for the share price to increase significantly.. In fact the most likely scenario is a static price being rapidly eroded by inflation. [If you adjust for exchange rates CSL has already lost all the gains of the past five years.]