lol I haven't ever used a CAPM model since uni days.But you do...

  1. 8,105 Posts.
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    lol I haven't ever used a CAPM model since uni days.

    But you do agree in the basic premises risk free return + risk premium.

    Given a constant risk premium (as per your points), I higher risk free return requires a lower PE.

    So I think we are debating points of required risk free, rather than risk premium.

    Why has CSL recently dropped?
    I would argue because of central banks 'higher for longer' interest rates, which feeds straight into risk free rate, and bingo down goes CSL share price.

    WIthout sufficient dividend yield, market participants don't have the courage to hold, especially as the share price hasn't done anything for several years.
    Pricing of last resort: sellers are greater than buyers: down goes the share price, and dividend investors don't step up because of the meagre yield.

    If you read the vast majority of hotcopper commentary it focuses on the underlying business. Not the price paid for that business.

    The logic being that so long as the fundamental business is sound, then I should be correct in buying/holding the stock.
    To me this logic is totally wrong as it only encaptulates half of the equation:
    a) The profit of the underlying business
    b) The PRICE paid for that underlying business.

    As one can guess I am very rarely popular on the CLS threadssmile.png

    But my capital position has been safe.

    And lol, I am no spring chicken, hitting the big 50 this yearsmile.png
 
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Last
$263.95
Change
8.640(3.38%)
Mkt cap ! $127.8B
Open High Low Value Volume
$258.12 $264.81 $257.91 $311.0M 1.182M

Buyers (Bids)

No. Vol. Price($)
1 833 $263.62
 

Sellers (Offers)

Price($) Vol. No.
$263.98 30529 2
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Last trade - 16.10pm 22/07/2025 (20 minute delay) ?
CSL (ASX) Chart
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