Climb Global Solutions Inc (NASDAQ:CLMB) stock has soared 130% year to date and is now approaching one firm's target price set in Q1 2024. Does this mean it's too late to buy the stock? It all depends on whether the market continues to reward its high growth — and whether its valuation has gotten ahead of itself.
After all, Climb Global now trades at an EV/ EBITDA multiple of around 19.4x, significantly higher than the projected multiple set by Headwaters Capital in Q1 2024.
The company is certainly putting up some strong growth, but the debate is whether that growth warrants this year's multiple expansion. In the third quarter, Climb's net income and adjusted net income increased more than...
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