You won’t buy them on a P/E of 11

October 11, 2022 Leave a comment

I’m reminding myself to be ready to buy great franchises at valuation multiples that you seldom see.

Microsoft may be one of those.

If the price trades down to the $216 mark, the price action makes me comfortable that the stock has noticeably mean reverted to its 200 week moving average and has traded to 2.5 standard deviations below its weekly mean and registered a weekly oversold reading.

At $216, MSFT would be trading on a forward P/E ratio of 18.

One doesn’t see MSFT trade at 18 times earnings too often.

October 11, 2022

by Rob Zdravevski

rob@karriasset.com.au

Filed under Finance & Investment Tagged with ,

Contracting P/E Ratios – European Value

September 15, 2022 Leave a comment

I prefer ‘value’ (rather than growth) stocks being in distress because balance sheet analysis is an added and viable tool.

While there are surely holes in the argument that the ‘E’ (earnings) forecast may still be lowered, I think this market is in the general vicinity of favouring buyers, more so than ‘sellers’.

September 15, 2022

by Rob Zdravevski

rob@karriasset.com.au

Graphic Source: Bloomberg | Jean-Charles GAND

Filed under Finance & Investment Tagged with ,