Is CSL Limited a buy at this share price?

CSL Limited (ASX:CSL) is one of the highest quality companies on the ASX in my opinion. But is it a buy at the current share price?

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The shares of biotherapeutics giant CSL Limited (ASX: CSL) edged higher this morning following the announcement that its novel therapy for haemophilia has received marketing authorisation from the European Commission.

Afstyla is a recombinant factor VIII therapy and the first and only single-chain product for the treatment of haemophilia A. It has been specifically designed to provide protection from bleeds with two or three times weekly dosing and can be used by all age groups.

CSL estimates that 1 in 10,000 people suffer from haemophilia, with the majority of these suffering from haemophilia A. Whilst this means the potential market size is not the largest out there, it is still a reasonably lucrative market worth several billion dollars per year by my estimates.

Should the company be able to capture a meaningful slice of the market then I believe the product will contribute to CSL's impressive run of sales growth.

In the last 10 years CSL has increased its sales on average by approximately 12.8% per annum. Impressively, it has managed to grow its bottom line at the even quicker rate of approximately 14.1% per annum.

Thanks largely to a strong pipeline of lucrative products and the growth of its influenza vaccine business, Seqiris, analysts expect CSL to grow earnings by a remarkable 29% per annum through to FY 2019 according to CommSec.

I believe that with its shares changing hands at 33x trailing earnings and around 15% off their 52-week high, now could be a great time to snap up CSL shares for the long-term.

It may not be a bargain buy like Mayne Pharma Group Ltd (ASX: MYX), but it is easily one of the highest quality companies on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) in my opinion. This makes it a must for investors' portfolios as far as I am concerned.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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