– 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

http://www.valens-research.com/uniform-accounting-highlights-psmts-adjusted-eps-will-weaker-reported-eps-slower-growth-contrary-current-valuations-pricing-firm-perfection/?utm_source=rs

View Reddit by Valens_ResearchView Source