Based on the provided data and recent market activity, here's a comprehensive analysis of whether COR is overvalued:
Technical Analysis
COR is currently showing signs of technical weakness with RSI-14 at 45.13 and stochastic indicators below 20, suggesting an oversold condition. The stock is trading below its 5-day moving average of 244.78, indicating short-term bearish momentum.
Valuation Metrics
- Current P/E (FY2023): 21.1x
- EV/EBITDA: 11.02x
- Price/Sales: 0.14x
- Price/Book: 69.23x
Growth and Profitability
The company has demonstrated solid growth with:
- Revenue growth YoY: 9.9% (from $238.6B to $262.2B)
- EPS growth YoY: 6.1% (from $8.04 to $8.53)
- Gross margin decline: from 3.2% to 2.99%
Recent Developments
According to recent analysis, COR has:
- Outperformed YTD with 8.4% returns vs S&P 500's 2.9%
- Received a consensus "Strong Buy" rating
- Mean price target of $282.14 (15.8% upside potential)
- Baird raised price target to $307 (26% upside)
Conclusion
COR is NOT overvalued considering:
- Strong earnings growth trajectory with 11.7% expected EPS growth
- Trading below analyst consensus price targets
- Recent earnings beat and guidance raise
- Reasonable EV/EBITDA multiple relative to growth rate
- Strong market position in pharmaceutical distribution