I found a way to access Bloomberg’s no.1 competitor for 90% less. Here’s how →
Today’s idea is a 38-year-old enterprise software business.
The current market cap is roughly half the value of the cash pile and invoices alone.
Those invoices are owed by businesses that have purchased software licences, often agreeing to pay over several years.
The business itself generated $57.6m of reported revenue last year.
Over the last five years, it’s also produced an average of $7.4m in annual owner-FCF, after adjusting for real-world costs.
Here are the valuation ratios:
NCAV Ratio = 0.85
TBV Ratio = 0.61
EV/FCF Ratio = 1.62
For the EV/FCF ratio I decided to use a more conservative estimate of $5m in sustainable annual owner-FCF.
The FY2026 owner-FCF was approximately $11.6m.
Over the last 30 years it has never failed to generate positive owner-FCF.
It still remains positive on a TTM basis, and even over the most recent quarter.
There’s a catch, of course.
There always is.
The company’s traditional software products are facing technological disruption, and some of the decline does seems to be structural, to some degree.
Management has responded by reducing costs and developing new products that address the disruption.
One particularly interesting product was launched just this month (October 2026).
Meanwhile, the company is still generating cash and returning substantial amounts to shareholders through ordinary and special dividends.
At today’s price the market is pricing in the death of the business and the total failure of their product development.
In addition, it’s also implying that the product development efforts will simply burn the massive cash-pile, leaving shareholders with practically nothing.
In other words, all we needs here is for the business to simply not die.
My favourite type of set up.
Let’s take a look...