@Barkston , Nice to hear from a fellow AUB shareholder. But...

@Barkston ,

Nice to hear from a fellow AUB shareholder.

But please don't take my presence here as an explicit endorsement to buy AUB at current prices.

When I first bought AUB, in 2008, the company had just reported Net Profit of $14m (EPS of 28c), placing the stock on a 13.5x P/E multiple based on my purchase price at the time.

I recall at the time feeling that I was paying a reasonably full multiple for what looked to me like being a small cap company that was slightly above-average in quality.

Over the 9 years that I've own AUB, it's financial performance far exceeded my initial expectations, prompting me to add to my holdings on several occasions over the years.

I have on no occasion sold any AUB shares.

Today, the company makes around $40m in NPAT (EPS = 64cps). Accordingly, the stock is currently trading on a P/E of 19.5x which, I think, leaves the stock overvalued.

I will continue to hold all my shares, despite my sense that the share price will, at best, mark time for a year or two, as the organic earnings growth chews into the lofty valuation multiple.

[*] If AUB trading on a P/E of ~20x is rich, then it is only eclipsed by its listed peer, SDF, which currently trades on a whopping 24x multiple. A bit crazy, I think.