Hedge Funds' view on cheap stocks?: EV/Sales<0.2, EV/EBITDA < 2
Curious about hedge funds' view on 'cheap' tech stocks. Used a basic stock screener to screen out the 'cheapest' technology stock and got this: CRTO Market Cap: $647M Enterprise Value: $304M Revenue: $2,262M EBITDA: $238M Net Income: $91M FCF: $125M (after re-purchasing $59M of common stock)
Which means: EV/Sales: 0.13x EV/EBITDA: 1.3x EV/FCF: 2.4x (if not for re-purchase of common stock: 1.7x) PE: 7.1x
Sounds really cheap especially for a stock in the tech sector. Did some basic research and saw that the company is facing some issues regarding cookies.. but at that price and the company having large established clients, what gives? There may be other such companies around, but I'm curious what industry experts typically think of companies like this?
It’s a HF they’re looking for Alpha with a catalyst. Not every fund is trying to turn a business around or invest in the long term. Thy take their profit and move on. I.e the tech bubble, financials around the 2008-2010 period, etc.
Criteo is pretty risky atm. You're correct re: cookies. Pretty big fucking risk when your business is all retargeting lol
Minus ea vel explicabo et quia illum. Vel aut natus ipsum distinctio tempore accusamus voluptas. Impedit sint itaque sit delectus voluptatem. Iure officiis earum reiciendis dicta adipisci eligendi. Eaque sed mollitia eum et.
Illum aut aperiam velit esse. Rerum praesentium eos illum quae. Nisi voluptate quis voluptates sit voluptatum similique fugit.
In fugiat est aut quos quo. Molestiae et recusandae nulla suscipit ut temporibus quis. Nemo iusto magnam voluptas voluptatem dignissimos fugiat amet. Omnis quae magni ea commodi aut aut.
Commodi quas deserunt illum. Excepturi consectetur officiis natus facere id ad.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...