Computershare Still Undervalued Despite Share Price Recovery

Like many stocks, narrow-moat-rated Computershare had a strong share price rally from its low last March, rising 80% to its peak in December. That said, the shares still fell 13% over the calendar year and underperformed the 2% fall in the S&P/ASX 200 Index. We attribute the big share price swings in 2020 to the perceived negative effect of the coronavirus pandemic on earnings and the positive effect of near-zero percent interest rates on asset values.