European growth story at 10x FCF

Time to Make Europe Great Again

Hello, Ultimate Value readers!

Lately, I’ve been doing a lot of work on European stocks. With Germany recently taking unprecedented fiscal action, investors are finally excited about Europe again, so it’s a great time to look for good assets at cheap prices in the region.

This one fits the premise perfectly. It's a European stock that is a good, defensible business (asset-light, high margins, etc.) growing at a double-digit rate (revenue at LDD, earnings at a mid-teens rate), but with the likelihood that it accelerates given an improving European economy. Plus, this one would benefit directly if the war in Ukraine ended. It’s also dirt cheap—at ~10x FCF on 2026 numbers.

Best of all, it’s very underfollowed. I haven’t seen it mentioned much on Twitter, and it’s not on VIC, etc. So, I’m excited to share this opportunity.

Let’s take a look.