@CaptainBarnacles Continued loss of market share in Australia...

@CaptainBarnacles

Continued loss of market share in Australia and flat Operating EPS guidance for calendar year 2018 are the likely culprits for the price drop IMHO.

At an EV/[Operating EBITDA] of 14.5, IVC still feels somewhat expensive to me, when top line growth is just about 1.5%-2.0% pa.

For me, the investment case for this type of business lies in the capability of Management to maintain long-term organic revenue growth of at least the compound rate of 1) the death rate and 2) CPI inflation.

If that is no longer the case (primarily because of a prolonged loss in market share), then a re-rating to a lower valuation multiple seems appropriate.

IMHO & DYOR