Overlooked Alpha

Overlooked Alpha

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Overlooked Alpha
Overlooked Alpha
This Software Developer Could Gain 40%

This Software Developer Could Gain 40%

A cheap valuation and solid growth can't go unnoticed forever

Joe | 3MB
and
Overlooked Alpha
Nov 26, 2023
∙ Paid
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Overlooked Alpha
Overlooked Alpha
This Software Developer Could Gain 40%
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Highlights:

  • Shares in this software and payments company have gone nowhere since a 2018 IPO — but that should change.

  • A steady and successful acquisition strategy has increased the percentage of revenue from software, yet the market is still valuing the stock as a lower-multiple payments play.

  • A closer look at multi-year performance shows acceleration in revenue and attractive valuations in M&A.

  • 40% upside seems achievable with further growth in 2024 amid reasonable multiple expansion.

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