A healthy business trading at half net-cash

This net-net trades at 46% of TBV, 1x EV/FCF and 2.1x P/FCF, and is still paying dividends.

Today’s stock is a UK listed business with the following valuation ratios:

NCAV Ratio = 0.52

TBV Ratio = 0.46

EV/FCF Ratio = 1

P/FCF Ratio = 2.1

This is the kind of simple set up that I love.

A business priced as if it will cease to exist tomorrow.

In this case, it’s even better because the valuation is so clear. The business is being priced at over half of the value of its net-cash (after debts).

Here, the market is saying that the value of £1 inside this business is less than £0.50.

Despite the fact that this business has been around for over 100 years and has overcome similarly challenging periods before.

The only question is whether todays price is accurate or a mispricing.

Let’s take a closer look…