Q: What should we do about BYD? According to BNNbloomberg website BYD had $4.37 of earnings in the past 12 months. BYD still trades at 'beaten down" price of $170 so the PE is in the high 30's. When BYD had rapid growth a high multiple was warranted but growth has tapered off. Do you think that is temporary? If so, why? In the past I have purchased down under 180 and I have done well. But I am concerned that the market might not want to pay such ahigh PE for a company where growth may be more difficult going forward. There are still lots of mom and pop autobody shops that not to find a buyer so I am still some what positive on BYD. Is BYD having to pay too much to get owners to sell? Organic growth is no that strong with BYD is without their bolt on aquisitions I am not sure they can continue the grow that much. Do you agree?
5i Research Answer:
Its forward earnings are 27X but its trailing P/E is 152X, analyst estimates are calling for 64%...