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Csl share price peaked in mid feb 2020 before the covid induced...

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vic_wattle

3,499 Posts.

99

05/03/21

18:01

Post #: 51559778
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Originally posted by madamswer ↑

"like i have been saying, keep an eye on those rising bond yields.
Debt is no issue for CSL directly, but us 10yr bond yields are the benchmark for the risk free return, against which the market will compare CSL earnings yield."

Spot on.

Two totally unsustainable factors that drove CSL to a P/E of almost 50x around this time last year were:

1. The A$:US$ exchange rate fell to under 0.58

and

2. The risk-free rate of return hit an unprecedented 50bp

Both have snapped back from those unsustainable levels, which is impacting the CSL share price.

Most people, I suspect, understand the impact of the former (the exchange rate), but I sense not many appreciate the dramatic impact bond yields have had, over the years leading up to the Covid crisis, on the valuation on long duration growth stocks such as CSL.

The realisation is now dawning.

.

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Csl share price peaked in mid feb 2020 before the covid induced meltdown in the exchange rate and risk free rate.

CSL Price at posting: $248.58 Sentiment: None Disclosure: Not Held
1 Upvote

1 Great analysis

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(20min delay)
Last $288.79		Change -0.140(0.05%)		Mkt cap ! $139.8B

Open	High	Low	Value	Volume
$289.90	$290.00	$287.43	$81.59M	282.5K

Buyers (Bids)

No.	Vol.	Price($)
1	1859	$288.71

Sellers (Offers)

Price($)	Vol.	No.
$288.79	8	1

View Market Depth

No.	Vol.	Price($)
1	1859	288.710
1	1298	288.300
1	915	288.220
1	48	288.200
1	1298	288.150

Price($)	Vol.	No.
288.790	8	1
288.860	705	1
288.940	813	1
289.020	806	1
289.080	280	1

Last trade - 16.10pm 07/10/2024 (20 minute delay)

CSL (ASX) Chart