Sadly for the ASX, it is priced to perfection. The only way to justify a “market like” rate of return at the current implied earnings trajectory is if you value those terminal earnings at 29-31x forward.
Recall that with stock-picking, all that you are trying to do is work out if the “true” earnings trajectory is higher (lower) than the market expects, and if the “true” earnings multiple is higher (lower) than the market expects.
And that multiple won’t be the right one after this 4th delay.
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