Hi, can you explain your rationale why would you assign a higher terminal multiple for CSU (25x normal case) than FTNT (20x)? Just wondering since FTNT it's a higher grower business. Thanks again.
Hi Isaac, my rationale for that is that I ascribe a higher risk to Fortinet's core business. Altough Fortinet currently have a leading position in the cyber security space, there are several real threats in the market, and not just other companies doing what they do at a similar quality, but also other technologies competing for the same clients in the space.
So, altough CSI has a lower growth profile, I still give them a higher exit multiple due to the stickiness and quality of the VMS businesses they own, and the lower risk of losing their earnings power over time.
great coverage, great business quality, thank you!
Thank you, Maverick!
cheers, keep it rocking, great content, you will do well ;)
Hi, can you explain your rationale why would you assign a higher terminal multiple for CSU (25x normal case) than FTNT (20x)? Just wondering since FTNT it's a higher grower business. Thanks again.
Hi Isaac, my rationale for that is that I ascribe a higher risk to Fortinet's core business. Altough Fortinet currently have a leading position in the cyber security space, there are several real threats in the market, and not just other companies doing what they do at a similar quality, but also other technologies competing for the same clients in the space.
So, altough CSI has a lower growth profile, I still give them a higher exit multiple due to the stickiness and quality of the VMS businesses they own, and the lower risk of losing their earnings power over time.
Hi, is it possible to get the 7day free trial and after that the 20% forever discount? thanks
Hi Isaac, I believe you can still use the link in this article for that, if not, let me know and we will sort it out: https://www.investinassets.net/p/portfolio-reveal-and-new-service