65 PE is still very high at current price but there is a pathway to a more reasonable valuation.
Purely hypothetical - If there is a recession and the SP500 drops -25% from here, high multiple tech is going to drop further let's say -33%.
That gets us to 44 PE and with a year of ALU earnings growth at 20% gets us to 35 PE, probably at or even under a long term terminal multiple similar to what high growth tech from a generation ago still trade at (SEK, REA, CAR etc).
That would allow us to buy earnings growth at a 1 for 1 basis or slightly more, with their growth blueprint of 20% - Warren Buffett style buying elite compounders with a dominant position at a reasonable price.
65 PE is still very high at current price but there is a pathway...
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Last
$67.33 |
Change
0.000(0.00%) |
Mkt cap ! $8.882B | |||
| Open | High | Low | Value | Volume |
| $67.35 | $67.39 | $67.27 | $41.33M | 614.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 6719 | $67.32 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $67.35 | 32411 | 3 |
View Market Depth
| Last trade - 16.10pm 07/06/2024 (20 minute delay) ? |
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Last
$67.34 |
Change
0.000 ( 0.14 %) |
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| Open | High | Low | Volume | ||
| $67.36 | $67.39 | $67.26 | 151380 | ||
| Last updated 15.59pm 07/06/2024 ? | |||||
| ALU (ASX) Chart |