Q: Good day.
The valuation of CSU has declined a lot, while the earnings continue to grow nicely. Lets suppose there is a permanent rerating of the stock. To a level half way between where it used to trade and where it trades now. And the company continues steady state growth. What would the stock price be in 2 and 5 years?
Thanks.
The valuation of CSU has declined a lot, while the earnings continue to grow nicely. Lets suppose there is a permanent rerating of the stock. To a level half way between where it used to trade and where it trades now. And the company continues steady state growth. What would the stock price be in 2 and 5 years?
Thanks.
5i Research Answer:
This is a difficult exericise as it needs to make multiple assumptions, any of which could be way off. But...to answer, the stock under the conditions in the question could see $3,600 in two years and mid $4,000s in five. This assumes EPS growth over the 2 to 5 year term as well.