The last time CSL was a great buy was in Nov 2016 when the SP hit a low of around $90. At the point, it was trading at a PE of 23.7 of FY17 earnings - let's round to 24. Based on this historical measure and also looking at the growth profile and safety of earnings, I think a PE of 24 on FY24 earnings would make this a great buy.
Going by the midpoint NPAT guidance supplied by the company, EPS for FY24 should come in around $9.5 per share. Applying a PE of 24 gives a SP of $228.
One thing to note though is the US Fed rate in 2017 was near 0.5% and are approximately 10 times higher at this point with no sign of a slow down. To my way of thinking, an equivalently good bargain as 2017 would be at a lower PE than 24. The question is how much lower can it go than 24. I think that a PE of 22 or even 20 or 18 are not outside the realms of possibility. A PE of under 20 would make this a delightfully juicy buy. However, I'm not holding my breath till it gets there so have entered at the current price.
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Last
$279.92 |
Change
0.740(0.27%) |
Mkt cap ! $135.2B |
Open | High | Low | Value | Volume |
$278.87 | $280.30 | $278.20 | $122.2M | 436.9K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 1763 | $279.87 |
Sellers (Offers)
Price($) | Vol. | No. |
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$279.99 | 400 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1763 | 279.870 |
1 | 541 | 279.860 |
2 | 1004 | 279.550 |
1 | 282 | 279.500 |
2 | 236 | 279.450 |
Price($) | Vol. | No. |
---|---|---|
280.050 | 32 | 1 |
280.100 | 75 | 2 |
280.150 | 18 | 1 |
280.200 | 2689 | 3 |
280.250 | 10 | 1 |
Last trade - 16.10pm 13/05/2024 (20 minute delay) ? |
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Last
$279.87 |
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Change
0.740 ( 0.03 %) |
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Open | High | Low | Volume | ||
$278.83 | $280.30 | $278.29 | 57662 | ||
Last updated 15.59pm 13/05/2024 ? |
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MAGNUM MINING AND EXPLORATION LIMITED
Neil Goodman, MD
Neil Goodman
MD
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