Q: Is it just me or is Propel Holdings trading at quite a ridiculously low p/e for it's growth? What do you think is causing this? Thanks.
5i Research Answer:
PRL is 8X earnings, which seems low, until one compares it to other financials Giant banks right now are 8X also, and PRL is a fairly small company at $267M. But, at least, the stock is UP in 2023, which we can't say about mny financials nor many small caps. In its business of lending to consumers, it is sensitive to rates and the economy. Considering this, it does not get a high multiple, certainly not now with investors worried about everything. But, expected growth is indeed quite high, if we look at consensus numbers. It has only been public for a few years, but the current valuation is the lowest it has been since its IPO.