Redirect - Sytchev NBTF Sytechev writes "“The counterpoint is that valuations for our coverage are now 700 basis points to 800 basis points higher on a P/E basis vs. then (S&P 500 NTM [next 12-month] P/E is 500 bps higher). The caveat being of course 2 times higher organic growth momentum for engineers vs. pre-2019; that, plus margin expansion explain a lot of the fundamental revaluation."
What if Trump cuts on expenses as declared on numerous occasions and the 700-800 basis points above reverts to 700-800 basis points below the projected next 12-months S&P500. This is why I have skewed my portfolio towards Aecon trading at 4 to 5x EBITDA.
Your thoughts are welcome.