A lot of COVID winners, secular growth stocks, have fallen, and fallen a lot. But on a simple valuation frame, we will find stocks like IDP Education (IEL) trading at 7x sales.
Markedly higher valuations than pre-pandemic levels, despite rates recovering and potentially exceeding 2020 levels.
Pointsbet (PBH) is non profitable…
Domain (DGH) trades at c5x revenues into a market where, at least on face value, transactional value should decline if mortgage rates reprice, which they assuredly will, if they behave anything like the US mortgage market.
Generally speaking, there are still many names where the embedded earnings assumption requires a herculean eps CAGR over the next decade, if you assume terminals earnings reflect a “mature, market like” multiple. Odds of all of them reaching that milestone are very modest.
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