Ranjit Thomas

Why Are Mutual Funds Accumulating Medassets?

MDAS trades at 27x EPS, with 10% EPS growth, which looks solidly overvalued. I wouldn't be surprised if funds are looking at the revenue growth rate of 25% and buying it, but this growth is fueled by acquisitions. Looks like the analyst estimates for next year are too high. The stock is bound to come down as these estimates are revised downwards.