buy, page-8

RORO it seems.

Not an expert on this, but have been keeping an eye on GMG as I like the company and am looking for a good time to enter. So if my thinking is along the lines of the market in anyway, then "not going to buy yet, will wait and see" seems to be the reason for the recent drop.

Goodman Group has a historical PE average of just shy of 18, with lows of around 7 (look at March 2020 for example when it dropped to 9) and highs of around 27 (which it almost touched again in November 2020 when it got to around 26). So when you compare the current price to itself, even at today's PE of 22.7 it is on the "expensive" side of things.

And while PE ratio's aren't everything, particularly for REIT's, it's a good proxy for the price you are willing to pay for future growth. Goodman Group came out recently and confirmed their FY21 EPS of 62.7c, which at current prices is confirming a 3% earnings yield and around 1.7% dividend yield based on their historical payout ratio. It has a phenomenal work in progress pipeline so you can imagine long term growth, which is sitting at around 9% EPS growth. Pretty solid, but still on the expensive side of things.

Things have probably run a bit hard. I know lots of people that would happily buy the dips and accumulate. Though I also wouldn't be surprised to see $16's being tested again, which seems to be the support from Feb and June this year.