Q: Hi, I think I know all the positives for this company but based on the valuation would you buying right now? How does the current valuation stack up to it’s historical? Or those of their “peers”. I know a long term investor shouldn’t time things, and I hear that sage voice saying buy when others are fearful, it’s just hard for me to pull the trigger (I think I’m one of the fearful ones)
Thanks for your advice.
Thanks for your advice.
5i Research Answer:
ATS doesn't have a lot of pure comparables, but its valuation of 22X forward earnings is fairly close to a select Bloomberg peer group. Its current P/E is higher, but it is growing faster. But it has always been 'expensive' and its current P/E is actually lower than its own long term average. With strong growth, momentum, earnings and higher expected spending on robotics and AI, we would remain quite comfortable as buyers.