FNArena’s Weekly Insights – May 26 2025
In today’s Weekly Insights:
How Do We Value The Future?
By Rudi Filapek-Vandyck, Editor
Invest in the future is an oft provided free piece of advice to investors, including by yours truly.
After all, when major technological changes descend upon society, it’s better to own the manufacturer of the revolutionary automobile instead of having to witness your hard earned withering away in a cheaply priced company that sells carriages for live horse power.
In practice, however, this is far easier said than done.
The decade past has shown plenty of emerging, disruptive challengers that came unstuck eventually and never genuinely recovered. One look at the share price trajectory of 3P Learning ((3PL)) is all one needs to comfortably conclude there have been more disappointed shareholders than otherwise post 2015 ASX-listing.
Experiences from the likes of OFX Group ((OFX)), Appen ((APX)) or Tyro Payments ((TYR)) have not been dissimilar.
Then we have highly promising, though not yet profitable contenders such as Megaport ((MP1)) where share price volatility might be a major source for whiplash sufferings among investors across Australia.
Of course, there is also a small selection of high quality, strong growth achievers just about everyone admires where management at the helm seems to be doing all the right things, and has been for many years on end.
But then you look at the numbers underlying today’s share price and your inner voice exclaims OMG!
92 times this year’s forecast EPS! A dividend of zero point something percent!…….
