Ann: Trading Update and Revised FY2019 Guidance, page-22

"do you think a pe of 10 here gives us a reasonable margin of safety?"

In short, yes:





I don't believe BLD is a premium-to-market quality business and therefore does not warrant a premium-to-market multiple.

But, by the same token, valuation-wise, I don't think it warrants being rated at a ~40% discount to the broader market.

In other words, with reference to the graph above, I think that for the vast bulk of the past decade (i.e., between 2009 and 2017), the stock was overvalued, becoming appropriately rated around 12 months ago.

It is only in the past 2 or 3 months that the stock has been in what I consider to be undervalued territory.