Yes, but there are what i perceive as risks at least equal to those still in the market today (see my post 8668).
IMO, ATM has no domestic peers. The closest I an think of is Comvita, which is a stretch to say it is really comparable. As an aside I expect market development expenditure for ATM to increase a lot.Quote:
A2 is trading on par with its domestic peers while housing the best ( by far ) margins on the market... with a steady flow of cash with no real expenditure.
Eventually these high PEs have to come down. The fact that they haven't is a warning sign for me.Quote:
A2's performance has warranted a set of above market and above sector multiples.
Since August, the Forward PE has floated between 40-50 alongside every upgrade.
PEGs are usually based on analysts projections, not company projections. I don't think it is very easy to forecast where sales and profits will go from here. I would take all published PEG ratios for ATM with a grain of salt.Quote:
Having one of the lowest PEG ratios on the market is also of no significance?
SNOOPY