After a Great Run Last Year, Is WD-40 Overvalued?
In 2020, mass-market retail lubricant manufacturer WD-40 (NASDAQ: WDFC) enjoyed its best year in the stock market since 2017, as its stock jumped 37% on revenue and earnings momentum. Sales of its multipurpose, name-sake product enjoyed a renaissance, as isolated consumers spent time with projects around the house during the pandemic -- a trend that remains unabated at the outset of 2021.
Yet as a consequence of recent investor enthusiasm, WD-40 now trades at a pricey 52 times current fiscal-year earnings (the company issued its fiscal first-quarter 2021 earnings on Jan. 7). Have shares of the popular household brand run too far, too fast?
Image source: WD-40.
Source Fool.com
