Computershare (CPU.AX)
Financials · ASX · Australia
Fundamentals
Valuation and ratings
Computershare trades at A$39.66, which is 54% above the A$18.21 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 61 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 26.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Computershare
Computershare Limited provides issuer, corporate trust, employee share plans and voucher, communication and utilities, technology and operations, and mortgage and property rental services. It offers issuer services, including register maintenance, corporate actions, stakeholder relationship management, corporate governance, and related services; corporate trust comprises trust and agency services; mortgage and property rental services, including tenancy bond protection services; and employee share plans and voucher services comprising administration and related services for employee share and option plans, and childcare voucher administration services. The company also provides communication services and utilities operations consisting of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery. In addition, it offers technology services, such as software solutions in share registry and financial services, and operations and shared services. The company operates in Asia, Australia, New Zealand, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, Africa, and the United States. Computershare Limited was incorporated in 1978 and is based in Abbotsford, Australia.
CPU.AX passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Computershare (CPU.AX) undervalued?
Against our discounted cash flow estimate of A$18.21, CPU.AX at A$39.66 is 54% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CPU.AX's P/E ratio?
CPU.AX trades at 26.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.