A little too expensive
Sygnia is trading at all-time highs of over 1 800c and on a price-to-earnings (P/E) multiple of around 30 times. If it can double its earnings in the next period, which it likely can due to new business inflows, it’ll be on a P/E of some 15 times. That’s a fair P/E but to my mind still expensive. For a company that doesn’t earn performance fees on the funds it manages, I would think that a P/E of around 10 times would be more reasonable. That said, it’s important to remember that markets do what they want and Sygnia can move significantly higher and become markedly more expensive. So, if you hold the stock, enjoy the ride, but I would caution against buying at this valuation.
Sygnia is trading at all-time highs1 800cof over and on a P/E of around 30 times.