Posted 12/31/2023, 12:00:53 PM
Calix Share Price May Be Overvalued Despite Strong Past Growth
- Calix's high P/E ratio of 60.1x indicates investors have high growth expectations, but earnings have actually decreased 7.8% over the last year
- Total EPS growth over the last 3 years was strong at 323%, but future growth estimates are only 3.0% compared to 10% market growth
- Current high investor expectations seem unrealistic given the disappointing earnings decreases and lower than market growth forecasts
- Calix shares appear overvalued trading at 7.1% below estimated fair value, despite risks of slowing growth
- Earnings are expected to grow 24.78% per year, but the high P/E ratio signals investors may be too optimistic