PE
PARSLEY ENERGY INC
stock NYSE

Modelling a doubling of revenue and operating margin by 2030. By then the company would still be trading at a PE 26. Though I agree; a higher operating margin would be appreciated. They have a 4% margin after the acquisitions!.

With a 182 PE ?

I don’t follow it that closely. People don’t seem to understand that cyclicals PE is not very meaningful.
Considering there is a backdrop recently of this type of companies doing very poorly stick price wise, I think the risk reward is heavily skewed to reward.

At the current levels of 18.5 PE the company is projected to pay its investors about 4.12% in dividends.
Compared to SCHD 3.13%, that is great!
At current prices the stock is almost 20% off of all times high,
And trades at a 30% discount compared to its duo in the duopoly - KO.
The dividend alone is better than current sgov at 3.79% yield a year,
While i am well aware of the news lately - projected to sell less in South America and has a few more matters that might interfere with the company’s revenue,
It cannot be ignored that this stock usually pays 3-3.2% of dividends, only because of the PE.
From current prices, the data suggests about 20-25% upside.
I’d love it if y’all help me improve my thesis (or say that it is just completely wrong and suggested other explanations).
Also, English is a second language for me and i’d love you to correct me if I didn’t use the right terms.
Thanks a lot for reading.
I do not recommend to invest in this stock and i do not call anyone to take action because of this post!!!
Always make your research, and i probably missed a lot of information. 🧐🤔

Eps for 1st half is .09. That’s .18 if annualized, which translate to PE ratio of 25.8 at current price of P4.65. 3.88% percent lang ang yield. Overpriced pa din. Better to invest in fixed income securities kung ganyan lang. Consider that equities are riskier so you must demand a higher risk premium. Price should be lower pa unless there will be substantial growth in earnings.

Stock based compensation rose +34% YoY in the latest ER and equals to 60% of net income. Management only reward themself when earnings increase, not the shareholders.
That's why GAAP net income is stuck but non-GAAP is rising.
They need to reduce their SBC by a lot for me to be interested. Right now they are traded at a forward PE of 60 adjusted for SBC, which is a clear overvaluation imo.

USD 127-254bn by 2035 under 10x and 20x exit PE, respectively

C[annot paste images in comments here; see the last table in my post](https://illiquidalpha.substack.com/p/reddit-nyse-rddt-the-early-stage?utm_source=profile&utm_medium=reader2)\- in last row you can see the net income projection for 2035 under different scenarios. If you multiply it by 10x or 20x exit PE, as per assumed in rows above, you get the implied market cap in 2035, as well as the implied return from here (USD 30bn case is applicable here)

Buffett famously invested in Apple at around 16x PE. That’s an initial earnings yield of 6.25% right off the bat. Since then, AAPL has gone on to increase its EPS from around $2.16 per share to $8.71 per share, a 4x increase. This means his initial earnings yield of 6.25% has increased to 25% in 10 years! And it will continue to increase going forward.
So how does this compare to GOOG? Well, Google is in the fortunate position to be growing its earnings (or at least EPS) by around 20% per annum. Going by his 13-F’s, Buffett’s investment in GOOG would likely have been made around 25x PE normalized. If we do the math, this means Google will likely be able to increase its earnings yield from 4% to 25% over the next 10 years (1/25 x 1.20\^10). That’s another AAPL over there!

If you don't already own it, I think now is not a bad time to start a position... Despite what anyone says Nike is still the most well know brand in athletic apparel and the first one that comes to mind for 9/10 people. That is brand power, and that counts for something.
From a numerical POV, sales are slightly down which is never great to see but I think this is more of a temporary blip caused by the outgoing CEO who focused so heavily to DTC, he destroyed other lucrative retail partnerships.
Lastly, while a PE of 19 doesnt necessarily scream cheap, I don't think the bears have considered that the "E" is being compressed due to discounting old inventory to start fresh. If Gross Margins simply normalized, than NKE would be around a 15PE which ain't bad for a company this well known worldwide.

Nike has a higher PE than Google right now.

r/valueinvesting over there talking about the average PE of S&P companies being a 26 is sign of bubble top. Calls

2 years of correction is nothing new and nothing abnormal, for both macroeconomic or technical reasons. Nifty PE was 22 when Nifty was at 17K, around May 2022. Nifty has not grown since September 2024. Now at 25k, the PE is still at 21. This means the price and EPS remained synced until 2 years back. FIIs finding better opportunities elsewhere, mutual funds inflows shrinking etc. can mean many other things, like regulations not making it profitable or more difficult for the FIIs, or that domestic lumpsum investors have mostly already invested and SIPs are shrinking because of probably misplaced investor psychology? Why misplaced? Just look at the rush that existed to buy into gold and silver at their peak a few weeks back. And now, S&P500 is in the sights as it has done well past two years, primarily driven by capex growth in the tech sector.
So there are various reasons why Nifty has been stagnant, and it seems like nothing serious. My point is, saying 'bull run may not happen in our lifetimes' is too much, unless for some reason, the lifetime in next 1-2 years.

This. Company isn’t growing fast enough to justify a 30 plus pe. 20 PE max is a fair price for google. 

I just started a position. I can see them easily getting to $2 a share EPS next year. Giving them a forward PE of 21. Very reasonable considering their competitive advantages and TAM. Also during the last earnings call their were signs of improvement. Increasing revenue in the US and running shoes. China performed better than expected and I honestly don't think China could get much worse at this point.

Value investing also means price much below value. 20 PE ain't it.

# Combination would create a Global Health & Wellness Powerhouse
 
The consumer packaged goods (CPG) landscape is undergoing a massive transformation. With the planned $40 billion combination of two household-name giants—bringing together Kimberly Clark (KMB) with staples like Huggies, Kleenex, and Cottonelle with Kenvue's (KVUE) iconic health brands such as Tylenol, Neutrogena, Listerine, and Band-Aid—the industry is set to witness the creation of the world’s second-largest CPG powerhouse.
 Post merger Kenvue's higher operating margin should benefit Kimberely's overall operating margins.  In addition cost synergies should kick in additional margin points taking operating margins to \~20% from the current \~15%.
Kimberely and Kenvue currently trade at a lower PE multiple to US based CPG peers Procter & Gamble and Colgate-Palmolive.  If Kimberly can close this valuation gap in the next 3 years - that is a lift of 30 to 40% in price multiples alone,  which is in addition to the natural growth of the combined business .
 [https://userupload.gurufocus.com/2088709618661498880.png](https://userupload.gurufocus.com/2088709618661498880.png)
 Here is a closer look at the strategic rationale behind this mega-deal, the synergies driving it, and where the integration stands today.
#    1. Unlocking Synergies: Lean Operations Meets Higher-Margin Health
 At the core of the merger is a significant opportunity for operational efficiency and shareholder value creation:
 **Cost Optimization:** KMB Operating historically in high-volume, lean-margin categories has cultivated a top-quartile, disciplined cost structure. Bringing those lean operational practices to KVUE's higher-margin consumer healthcare operations creates clear pathways to reduce overhead and streamline supply chains.
**Category Complementarity**: The combined portfolio creates natural cross-selling ecosystems. In baby care, for example, pairing diaper lines with specialized skin lotions, baby washes, and soothing ointments allows the combined entity to support consumers seamlessly through every stage of early childhood.
  
# 2. Bridging Geographic and Channel Strengths
 
The merger delivers a nice fit across international distribution and modern retail channels:
 
**Global Footprints:** KVUE brings extensive brick-and-mortar retail penetration across Western Europe and massive distribution networks in key emerging markets like India (spanning over 3 million retail endpoints). The other side (KMB)contributes deep operational roots in high-growth regions such as Mexico, South Korea, and Indonesia.
**E-Commerce and Data Analytics**: Digital channels and wholesale club clubs represent major avenues for acceleration. Advanced data analytics and direct-to-consumer digital ecosystems developed in recent years will be deployed across the expanded product catalog to accelerate online market share.
 
 
# 3. Navigating Legal Realities and Market Bifurcation
 
Large-scale acquisitions in consumer health come with inherent complexities, from regulatory oversight to product liability questions. Navigating these challenges requires thorough due diligence with external scientific, legal, and regulatory experts, anchoring long-term strategy in rigorous product safety and clinical evidence.
 Simultaneously, the broader consumer economy continues to display a "barbell" pattern—demand is bifurcated between high-end premium offerings and budget-conscious value options. The strategic response is twofold: 
1. Drive premium innovation for consumers seeking specialized benefits.
2. Cascade premium features into value and mid-tier tiers to protect volume and reach cost-sensitive households without sacrificing quality.
 
# 4. Longer term Strategic Optionality
 
The acquisition of Kenvue fundamentally resets Kimberly-Clark’s corporate identity, shifting it from a traditional pulp-and-paper CPG manufacturer (commoditized, cyclical raw material exposure) to a diversified global consumer health and wellness powerhouse closer to the P&G and Colgate model.  Beyond the immediate cost synergies and distribution overlaps, this transformation creates several powerful long-term strategic pathways and optionality like further expansion into higher margin health & wellness categories.  Leaning into Preventative & "Self-Care" Consumer Trends.  Upgrading Channels like Pharmacies, Healthcare professional Detailing & marketing to Institutional Health. 
 In addition the combination provides opportunity for future innovation, Portfolio Pruning and additions.  Some examples the combined company could lean into are as follows.
 
|**Strategic Frontier**|**Current Kimberly-Clark Core**|**Kenvue Capability**|**Combined Long-Term Optionality**|
|:-|:-|:-|:-|
||
|**Active Senior Living**|Depend, Poise (absorbent paper)|Tylenol Arthritis, Aveeno Skin Relief|Integrated geriatric skin integrity, mobility, and personal care regimens|
|**Global Emerging Markets**|Latin America, South Korea|India (3.1M+ stores), Southeast Asia|Cross-selling consumer OTC products through paper distribution networks and vice versa|
|**R&D / Chemistry**|Non-woven fiber engineering, absorption|Active pharma ingredients (APIs), topical derm|Bio-active wipes, transdermal pads, medicated skin barrier substrates|
#  Current Transaction Status
 Following shareholder approvals earlier this year and the unveiling of the post-merger leadership framework, the transaction is progressing through customary global regulatory reviews. The deal remains on track to formally close in the coming few months, setting the stage for a new chapter in global consumer health and wellness.
 
 Note: **Reposted with AI flair.** *While the idea was mine, I used AI to help flesh out my thinking in writing this post.*

Yep... Palantir, Nvidia, Netflix, Amazon, Tesla, every great stock was once like this. NVDA had a higher PE in 2023 when it was trading at 500 than it does right now, and it is almost 5x the size.

20x PE for 0 growth company isnt attractive imo.

Most attractive PE?