I need an investment recommendation for the Australia Securities Exchange company (the ASX company itself not...

I need an investment recommendation for the Australia Securities Exchange company (the ASX company itself not the stocks it has on offer) and whether I should (BUY, SELL, HOLD, etc.) also need relevant data and ratios to support the decision.

Expert Solution

The investment recommendation for ASX stock is “SELL”.

The share is currently trading at AUD 84.53 at a P/E of (on a TTM basis) 32.81. The stock’s forward dividend yield is 2.90% and its TTM EPS is 2.58. (Note that TTM means trailing twelve months).

The sales/revenue of the company is expected to remain flat in future and hence there is no visible traction for this stock. The company’s long term growth rate is expected to remain flat at 3% going forward and this will lead to no upside potential with regards to the stock. The different valuation metrics like Price/Sales, Price/Book, EV/rRevenue, and EV/EBITDA also do not show any upside potential and a correction in the stock price is imminent. Price/Sales is 16.50; Price/Book is 4.21; EV/Revenue is 1.98 and EV/EBITDA is 2.24.

jeff jeffy answered 2 years ago

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