Quick Pitch #15

Re-visiting a name with a big upcoming catalyst

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.