– PSMT’s traditional EPS is materially distorted by operating leases, the age of their assets, and the resultant depreciation charges

– After making the appropriate UAFRS adjustments, EPS’ is expected to be significantly lower than as-reported EPS next year, as true profitability rebounds more slowly than as-reported EPS

– Materially weaker EPS’ at muted growth rates indicates the firm is significantly overvalued, with a PEG ratio in excess of 6x, and valuations at premiums to peers with greater expected growth


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