APH – Market expectations are for Uniform ROA to reach new peaks, and management is confident about high-voltage systems, market share gains, and global investments

• Amphenol Corporation (APH) currently trades above corporate and historical averages relative to Uniform earnings, with a 32.1x Uniform P/E (Fwd. V/E’).
  
• At these levels, markets are pricing in expectations for Uniform ROA to reach new peaks of 35%, accompanied by 7% Uniform asset growth.
  
• Meanwhile, analysts expect Uniform ROA to slightly improve to 26% by 2022, accompanied by 11% Uniform asset growth.
  
• If sustained going forward, these levels would imply a stock price closer to $72, representing approximately 15% equity downside for the firm.
  
• However, the firm’s most recent earnings call suggests management is confident about high-voltage systems, market share gains, and global investments.