A Durable Business for 3.3x FCF

Also includes an average SH yield of 8% and a large free-float.

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I found a way to access a Bloomberg-level terminal for 90% less. Here’s how →

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Today’s idea is pretty simple.

The market used to price it for exponential growth but then the business didn’t grow much.

The stock price now sits 70% off where it once was.

Now, it’s priced for imminent death, despite being a perfectly healthy cash-machine with a fortress balance sheet of net-cash.

Here are the valuation ratios:

TBV = 5.4

EV/FCF = 3.3

P/FCF = 4.4

It might be true that it won’t grow much, but it almost certainly won’t die either.

And that, ladies and gentlemen, is how you end up with an asymmetric bet with 100% upside potential.

Let’s take a look…