Ann: CSL Half Year Results Investor Presentation, page-101

I believe the P/E coming down, and the SP flatlining has most to do with the R&D program. CSL always had eye-watering relative P/E's as their R&D pipeline was exciting, and exciting blurs the normal view of P/E's.

However that has changed over the last three years. CSL has suspended or stalled several R&D projects in the last 3 years:
1. CSL112 for reducing the risk of major adverse cardiovascular events (MACE) in patients following a heart attack. The Phase 3 clinical trial failed to meet its primary efficacy endpoint of MACE reduction at 90 days
2. KCENTRA Trauma, HIZENTRA DM, and clazakizumab AbMR programs have experienced late-stage setbacks
3. At a recent R&D briefing, CSL announced the difficult decision to stop several clinical trials, though specific details were not provided.
4. A one-year agreement for a potential medication was halted in April 2021 after a Phase 3 clinical study failed to meet its targets.

Some projects of course have been successful, but item 1 above was a major setback and the other items 2, 3 & 4 added to the feeling that the blue sky had some clouds. It's still a money making machine, but I don't see it replicating it's past vertical growth.

I reduced my position post the CSL112 announcement. For me it was time to take some profits (I bought at IPO) as my feeling was that CSL had peaked for the time being.

I am still holding a third of my shares, but the $500 SP looks more like hope than a sustainable argument. Hope I'm wrong.