GRMN is currently trading at a 13x UAFRS-based P/E (V/E’), which is near historical averages. At these levels, the market is pricing in expectations for UAFRS-based ROA to decline from 17% in 2016 to 11% by 2021, accompanied by 7% Adjusted Asset growth. These expectations imply the market believes the firm’s competitive advantage has completely dissolved, and the firm will see profitability fade towards historical corporate averages.
Submitted June 28, 2017 at 08:40PM by Valens_Research http://ift.tt/2tm1iMI
No comments:
Post a Comment