Might it be a case of FPH being one of our very few successful, innovative, listed companies? And feted accordingly.
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Guru wealth advisor Mark mentioned RYM would be over $60 if they hadn’t done a share split.
And mentioned there’s a few managers who only buy shares over 10 bucks because they’ve must have done well to get there
https://craigsip.com/insights/overvi...ut%20you%20off
Talking if RYM being $60 ...oops only $12 odd these days I see the RYM:SUM relativity still true.
Some things never change - FPH and RYM always perceived to be over priced and MET always seen as so so cheap
FPH share price reflects (and rewarded for) it’s high ROIC of over 20%
Huge amount of excess returns over its cost of capital Is good ...and results in it trading at high P/B valuations (conversely economic value destroying companies generally tend to trade below NTA)
Mind you I think that FPH price is stretched to the point where the market is still expected even greater improvement than they have achieved in the past.
I've been a shareholder of FPH from day 1 and as far as I can remember the PE ratio has always been high. Analysts had often recommended "reduce" or "sell" and I was foolish enough to have followed their lead. I eventually realised that each time I sold, the share price kept on climbing to new highs. Hence, each time I'd sold in the past I'd regretted those decisions. I think there are quite a few people who share my experiences here.
Hkg — see returns on invested capital ...like making heaps out what capital is invested in the business is key
Higher excess returns over cost of capital higher market value
FPH ROIC greater then 20%
Cool eh