If you are valuing stocks based on last years earnings you are...

If you are valuing stocks based on last years earnings you are living in the past.

The market has already factored in this years earnings and some of next, so you are a long way behind.

So if you want to talk fundamentals, better start looking forward..........

The issue with FUN is that it is an outstanding growth stock. However its P/E and div yield are still moderate and really do not reflect the high growth aspect. A lot of growth stocks have PE multiples on forecast earnings over 20, FUN is still somewhere 12 or so.

There is plenty of room for price appreciation on its P/E multiple alone. If FUN keeps up its growth momentum it will gain more and more believers in its business model, and the P/E ratio will (should) get rated higher.

At 60-80c last year it looked a little better on fundamentals than it does now (PE back then was 10 or so and dividend yield higher than 5%). However the price is near on double now.

Is is hard to call it overvalued based on the stock standard multiples. But you got to believe that the business model is sustainable and can continue to grow.

acturtle