As a long term shareholder of CSL, suggest look to 3 things, interest rates, EPS growth and l/t PE trends.
Interest rates.....simple maths... DCF models value down growth stocks at higher interest rates - the formula punishes long dated cashflows. Also CSL has more debt post it vifor purchase, more debt to service at higher interest costs. Declining interest rates will support share price.
EPS growth. CSL advises that it will move back to 14% CAGR, this will drive down the P?E ratio.
P/E ratio trends (external and internal), all things being equal, P/E ratio's tend to revert to mean over time. CSL's l/t PE average is 40, its currently at 36 and with EPS growth forecasts (below) it will drop to 25 in 2 years - well it wont, the price will rise to at least where the P/E ratio now.
The maths are never exact, but the answer regarding future share price could be hiding in plain sight.
CSL Chart, page-1092
-
- There are more pages in this discussion • 18 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add CSL (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$300.26 |
Change
-1.400(0.46%) |
Mkt cap ! $145.3B | |||
| Open | High | Low | Value | Volume |
| $303.31 | $303.47 | $299.56 | $148.6M | 498.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 276 | $300.19 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $300.34 | 1250 | 1 |
View Market Depth
| Last trade - 16.10pm 13/09/2024 (20 minute delay) ? |
| CSL (ASX) Chart |