Lately, I have been discovering some very interesting situations involving conglomerates that are trading at a substantial discount compared to their sum-of-the-parts valuations.
I appreciate as a spin-off the Havas shares were distributed to Vivendi shareholders (and that could explain the drop after listing as they cashed in) but I don’t understand why the price was set as low as €1.80 - at 5 times free cashflow. Having looked at the Prospectus - and the company seems confident in its strategy and growth prospects - I have made an initial purchase.
I plan to make an article on Vivendi, it is incredibly undervalued but I do not see it as a good long term holding. Havas for example has huge upside in terms of multiple expansion and profit growth in the next 3 years.
I appreciate as a spin-off the Havas shares were distributed to Vivendi shareholders (and that could explain the drop after listing as they cashed in) but I don’t understand why the price was set as low as €1.80 - at 5 times free cashflow. Having looked at the Prospectus - and the company seems confident in its strategy and growth prospects - I have made an initial purchase.
One of the perks of spin offs, huge discounts when you find one worth it.
Vivendi itself is offcourse the real gem with significant undervaluation relative to its sharepositions in umg and telefonica italia
I plan to make an article on Vivendi, it is incredibly undervalued but I do not see it as a good long term holding. Havas for example has huge upside in terms of multiple expansion and profit growth in the next 3 years.
What do you think about Honeywell potentially being undervalued?