The global exit from the depths of the pandemic has hardly been the goldilocks recovery scenario that Compass might have hoped for. Revenue has come back faster than expected after lockdowns hammered demand, as workers have begun returning to offices, students are back on campus and major sporting events have restarted. But the inflationary pressures that have accompanied the steady return to normality threaten to take the shine off the catering giant’s rehabilitation.
Not that much hesitancy has been reflected in the FTSE 100 group’s market valuation. A price of 24 times next year’s forecast earnings is above a five-year average of 21, and its forward enterprise value is broadly in line with the average multiple over that same period. It’s also valued
