A business which has multiplied its cash flows 4.5x in last 10 years has generated 1% CAGR in last 10 years.
Think multiple times while paying high n have exit plan ready when things do not work out.
Guess the stock. All data taken from screener
10 Years back the business had very good growth, high margins.
But then looks like competition sensed opportunity, barrier to entry may not have been that great. So, slowly margins fell down
Not only margins fell, slowly growth vanished
The HIGH PE market was giving went for a toss
And now this is what we have after 10 years, 1% price CAGR. Of course, there were revenue segment details but still overpaying is overpaying
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