From most value investing metrics, the stock of Gamco Investors (NYSE:GBL) looks dirt cheap. Based on the trailing twelve-month earnings per share, GBL trades at a Price-to-Earnings ratio of about 5.3: 2Q20$0.421Q20$0.424Q19$0.913Q19$0.50EPS (TTM)$2.25Share Price12.11P/E Ratio5.38 If we use the 2019 Earnings per Share, the trailing P/E is about 4: 4Q190.913Q190.502Q190.881Q190.70EPS (TTM)2.99Share Price12.11P/E Ratio4.05 The operative … Continue reading Is Gamco Investors a Value Trap?
Tag: Free cash flow
Nugget: Adidas CFO on Capital Allocation
From the adidas 2Q2011 earnings call Q&A session, available at SeekingAlpha.com: Chris Svezia – Susquehanna Financial Group LLP "And the third question would be the use of your cash. If you keep your run rate of the declining net debt, you’re going to be net cash positive by the end of the year. Any thoughts … Continue reading Nugget: Adidas CFO on Capital Allocation
Buffett: The dream business
Avalon Holdings | Cash Flow Illusion
When I began focusing on value investing I started out using a Discounted Cash Flow method (DFC) to determine the future value of a security. However, the problem with DCF is that it forces you to predict and if you have a long time horizon (say ten years) only a fractional difference in growth rates … Continue reading Avalon Holdings | Cash Flow Illusion