Valeo share price reaction to 2017 results and 2018 forecast seems to rely on an apparent decoupling : orders intake are booming but return on capital and cash conversion don’t keep up.
Ingenico hast lost its mojo. A 7% miss on market expectations on EBITDA for both 2018e and 2020e has been severely sanctioned by investors. Shares of the payment terminal manufacturer lost 16% of their value on Feb 22, leaving the market cap of the company at €4.8 billion. At first glance, the fall looks excessive. But it’s probably deserved.
Michael Mauboussin is a highly respected investor, teacher, speaker and book writer. I came across a number of his notes in the past (including this one which I liked a lot). Thanks to the Internet and the many people who share good thinking, most of his notes are there to grasp and read.
While re-populating my blog, I came into his 1997 reflections on valuation. As Graham/Buffett nicely put it: price is what you paid, value is what you get. So to earn decent return when investing, you need to know the value so you can pay a price that gives you a good margin of safety.
The full note is available to read here. I just wrote down a couple of remarks that make sense to me and hopefully give you a quick overview of why it might be useful and what you will find inside.
Key purpose of the note is to defend the value-based approach of investing, to keep in mind what really matters in valuation and not to fall into « market myths ».
Company Name : Experian Plc
Nb of shares : 924.2m
Last close : GBP15.52
Market Cap : GBP14.3 bn
Sector : Business Services (information services) Continuer la lecture de « Focus/Stock: Experian Plc »
Why is it important and can one estimate it ? Continuer la lecture de « What’s an Economic Moat? »