A lit­tle too ex­pen­sive

Finweek English Edition - - MARKETPLACE -

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.

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