Clicks is not such a pricey pill to swallow
Students of p:e history might want to self-medicate their portfolios with a healthy supplement of the pharma retailer
Local investors, particularly those with a more sceptical lens on the world, will usually tell you that though Clicks is a great business and clearly a force to be reckoned with, the valuation makes it unappealing. It’s true that Clicks is expensive relative to many other retailers, but does that mean it’s always too expensive to buy?
Clicks is a member of the illustrious group of quality stocks on the JSE that trade at stubbornly high multiples. But even within the broader category of “expensive”, we can find examples of sensible and silly entry points. It would be incorrect to assume that Clicks is always too expensive to provide outsized returns, in the same way that it would be wrong to think that smaller companies at low multiples are always a buy...
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