WSP Global valuation

Hey there,

I wouldn't read too much into the recent drop. WSP has been solid this year and was sitting on gains of 24% year to date before the dip. We are seeing this with many stocks currently. It seems there is some profit-taking happening after some big year-to-date runups in stocks and I view this in very much the same vein.

Valuation-wise - it's not cheap - trading at a slight premium to historical averages pretty much across the board. This is just further evidence that the drop is probably justified after some big gains on the year. Today, I'd consider the stock to be fairly to slightly overvalued. That said, buying good companies at fair prices is not a bad way to go. Especially in an environment that is highly volatile. Also worth pointing out is that since WSP has been a strong performer operationally, it never really looks cheap compared to the competition and usually trades at a premium.

Of note, WSP is releasing earnings on Nov 8, so investors will get some additional insight into their performance.

Mat