888 Holdings (LON: 888): An Asymmetric R/R!
Description: 888 Holdings PLC Investment Summary: 888 Holdings PLC (LON:888) is a Gibraltar-based, London-listed and one of the Big 4 online gaming and betting companies operating in a highly regulated industry with increasing barriers to entry trading at 6x 2023 Earnings and 5x 2023 EBITDA. A string of events from the acquisition of the non-US operations…
Stock-Based Compensation: The correct way to deal with It when calculating Free Cash Flow (FCF)
In this post, I want to discuss what is stock-based compensation (also known as share-based compensation or equity compensation) and why it is a controversial subject when it comes to calculating the Free Cash Flow of any firm. First, what is stock-based compensation? As the name suggests, It basically a form of compensation offered by…
Organon & Co (NYSE: OGN): AN ATTRACTIVE SPIN-OFF!
Investment Summary: Organon & Co. (NYSE: OGN) is an attractive special situation that started trading on the 3rd of June 2021. The company was spun-off from Merck (NYSE: MRK) and the stock is currently trading at $30 (~5x times my estimates of 2021 EPS). The unwillingness of Merck shareholders (legacy shareholders) to own the stock…
Is the Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) Multiple Useless?
Enterprise Value is the total value of a firm and is defined as equity value (market cap) + debt (long-term and short-term) + preferred stock + minority interest – cash and cash equivalents. Earnings before interest, taxes, depreciation and amortization (EBITDA) is simply operating income (EBIT) plus depreciation and amortization. While many analysts on Wall-Street…
MERCK, AN UNDERVALUED PHARMA GIANT!
Merck & Co Inc. is a BUY at $83 (18 times earnings) given that I expect the business to compound at 10% (including dividends) annually through late 2024. Shares at this level allows the long-term investor to pay a price below fair value for a mega cap pharmaceutical company. Merck’s growth in oncology, vaccine and…
ARE WE IN A STOCK MARKET BUBBLE?
The stock market is at its all-time high with the S&P 500, Dow Jones at roughly 3700 and 3100 respectively. But why not? Everything looks just fine! COVID-19 is nothing! It has infected more than 75 million people and killed over 1.5 million only! The Federal Reserve and other central banks around the world have…
mbkvalueinvesting.com 