Hello, Ultimate Value readers!
I am back with a new idea today. Here are some of the takeaways:
Very liquid — ADTV is ~$18m USD per day.
Decent market cap — $4.3B USD. Enterprise value is $5.4B.
The company is trading at a trough valuation of 9.4x NTM earnings — despite top-line growth in the HSD range and FCF growth at a LDD rate for FY24.
A significant upcoming catalyst should help re-rate shares to a more normal valuation of 15-20x FCF/earnings.
Let’s take a look.
Note: I am renaming the three-minute pitch Quick Pitch, as these keep getting longer.