Elevator Pitch
Indonesia-listed home improvement retailer PT Ace Hardware Indonesia Tbk (ACEHF) [ACES:IJ] currently trades at 23.2 times consensus forward FY2020 P/E which is at a slight 5% premium to its historical five-year average forward P/E of approximately 22 times. The 5% valuation premium to historical average could be misleading, as market consensus earnings estimates for FY2020 could potentially be revised downwards, if the company's future quarterly revenue and earnings are below expectations.
I assign a "Bearish" rating to Ace Hardware, as an expensive forward P/E multiple in excess of 20 times is