If you are wondering whether Waters at around US$370 per share is offering fair value right now, it helps to step back and look at what the current price is really reflecting.
The stock is down about 5.5% over the past week, 2.9% over the last month and 10.8% over the past year. The 3 year and 5 year returns sit at 8.6% and 30.8% respectively.
Recent coverage has focused on how established life sciences companies like Waters are being reassessed by investors as they weigh up long term demand for analytical instruments against changing expectations for the sector. This shift in attention helps explain why the share price has been under pressure over the last year, even though there has been a longer term gain over five years.
