A £300m Business Trading at 2.6x FCF
This UK listed stock stock also has a TBV ratio of 0.6 and a lean, efficient business model.
Mr Deep-Value also offers separately managed accounts for accredited investors and specialist deep-value software for those implementing directly.
Here are the valuation metrics for today’s UK listed stock:
NCAV Ratio = 1.3
TBV Rati0 = 0.6
EV/5Y FCF Ratio = 2.6
P/5Y FCF Ratio = 5.7
The average shareholder yield over the past 10 years (at today's price) is 39.82% per year (17.79% dividends and 22.03% buybacks).
FCF has been positive in 8 of the past 10 years, and last year's FCF alone provides a P/FCF ratio of 2.6.
Based on my extremely conservative valuation model, I estimate there to be at least 70% upside from current levels.
(I outline the model at the start of this post).
It’s one of those rare deep-value set ups that has a cheap stock, a healthy balance sheet and an impressive business model.
In business-people speak, If you bought this company today, you’d probably have your money back within a couple of years, and all future profits would be the gravy.
No rational private business owner would ever sell their decades-old company for such a crazy price.
Let’s dig in…