Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Acquisitive AmSurg Corp Deserves Its Rich Multiple

In the healthcare space, it is somewhat rare to find a true growth company. Most of the growth companies that people talk about in the industry are really medical device companies or drug companies. AmSurg (NASDAQ:AMSG) is definitely an exception to this rule though. The company is involved in acquiring and developing ambulatory surgery centers in partnership with physicians groups around the country. Trading at roughly 19X trailing EPS (and ~16.5X CY 2014 expected EPS), AMSG definitely is not cheap. That said, this premium valuation is more than fully justified by the company's roughly 14% average annual sales growth rate and 10% average annual net income growth rate over the last decade. AMSG has been remarkably consistent on...

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