Excellent, in-depth analysis. CPRT business is certainly outstanding. But the question is, at 31x is there sufficient margin of safety for new investors?
Will admit, this post was purely to diagnose the business itself and what's driving its success and growth rates.
Definitely worth modeling out with those assumptions to see what price you should pay though and wait for your opportunity! (Yes, 31x trailing results is expensive)
Excellent, in-depth analysis. CPRT business is certainly outstanding. But the question is, at 31x is there sufficient margin of safety for new investors?
Will admit, this post was purely to diagnose the business itself and what's driving its success and growth rates.
Definitely worth modeling out with those assumptions to see what price you should pay though and wait for your opportunity! (Yes, 31x trailing results is expensive)
Another way to look at it is — consider expected forward FCF growth. Maybe 31x ttm isn't 31x, 1 year-forward, probably much lesser.
What would be your 1-yr forward estimate of FCF, since it's a better parameter than earnings?