its obviously overextended.good company and good long term...

its obviously overextended.

good company and good long term trend. but...

18% quarterly sales growth yoy should mean 3-4% extra EBIT to a full year - meaning 2-3% extra EPS. If you want you could assume similar jump for following quarters - but I understand that's not the way SRX sales typically trend. I understand they are typically lumpy. Someone else may have better info??

Stock is currently trading at 33x fy14 P/E multiple, based on concensus earnings before that sales kick.

SO its at best on 31x PE multiple. Healthcare sector average is 19 - though the best stocks fairly get 25X.


Fair but premium value id judge to be about about $13.30- 13.50 currently based on data to hand.

However, keep it for 12 months and it should definitely justify this price based on fy15 earnings expectations and more.

So it depends on your time horizon i think.

if you bought yesterday you definitely paid too much. but time heals all wounds.