Over the next four weeks, fund managers will pore over the financial reports of listed companies to determine whether the results properly reflect the company’s share price. The process of valuation is never simple, and we should all prepared for increased price volatility across the market. The pricing and assessment process may start with a knee jerk reaction based on expectations, shortly followed by a review for quality. Gradually market price will reflect the outlook presented by company executives – does this company still have potential sustainable growth? We take a look at the complex, and sometimes arbitrary process of valuing a company and highlight some key factors we look for. We will examine some high Australian PE stocks considered to be ‘market darlings’ including Domino’s Pizza, Ramsay Healthcare, REA Group, Cochlear and CSL Ltd. (VIEW LINK)
The Clime Group is an independent, highly-esteemed, Australian Financial Services Company, which seeks to deliver excellent service and strong risk-adjusted total returns, closely aligned with the objectives of our clients.