Analysts expect Cirrus to grow by more than 18% annually over the next five years, its free cash flow is growing, and its forward P/E is jus
Audio-chip maker Cirrus Logic tumbled after reporting disappointing quarterly results and guidance. Bears worry about its reliance on Apple, which accounted for more than three-quarters of revenue in its last fiscal year, though Cirrus has been lining up other customers. They also fear that lower-priced iPhones could hurt Cirrus and think its growth is due to slow. Bulls have seen its problems as short-term, though. Analysts expect
Cirrus to grow by more than 18% annually over the next five years, its free cash flow is growing, and its forward P/E is just 10, suggesting more room to grow.
18% growth annually?? Do you really believe that? If I truly believed CRUS will grow only at 18% annually over the next five years, (EPS) I would sell immediately (and I've held them since the late 1990's). These long term projections are really meaningless. at 18% annually over the next 5 years, we are talking barely over a double in stock price. Sorry, that's not enough for the risk and volatility we take on. I think the 18% is a throw away number. Hopefully, growth is much higher than 18% annually, on average, for the next 5 years.
We shall see, but for a 5 average it is probably a little low to will probably be closer to 25 than 18 and if there is a reason for my huge frustration it is this. We shall but combining the math and markets point to something much higher. So what is the peg? Anybodies guess. Mine after the new tax rate is .4.