Stocks I watch in no particular order including back of the envelop price targets.
Penn National Gaming
Assuming the company reaches its >USD 200 mn. FCF target the equity trades at an 18% FCFy.
Leases IT Infrastructure to SMEs
Lowest cost, proprietary credit scoring model, access to cheap financing via Grenke Bank deposits and ABS market.
20x 2017 net income of € 115 mn. or 156 € per share
Sells Lubricants under the WD40 brand
Niche Market, stellar WD40 brand not replicateable for competitors
At 15x EPSe of 3.60 WDFC is worth USD 54 per share
Sells online ads
more costumers of search means more data means better results means more costumers
At 20x FWD EPS of 41 USD Google is worth USD 820 per share
Is an integrated Canadian Oil Company
Lowest cash costs (15$ -27$ per bbl), slowly depleting and stable oil sands reserve base, M&A at cycle low to assume control over Syncrude at bargain prices.
at 10x FY2018e FCF of CAD 7.6 bn. Suncor Equity is worth CAD 76 bn. or CAD 45.5 per share. Other majors trade at 5-6% FCFy.
facilitates payments through American Express cards and unlike VISA and MasterCard holds credit card loans on its balance sheet.
at 15x FY2018 EPS of 6.28 shares are worth USD 94.2 per share
Largest US. Retailer
Economies of Scale, Purchasing Power, Lowest Cost
At 15x FY2017e EPS of 4.32 Wal-Mart is worth USD 64.8 per share
Sells auto spare parts.
Narrow Moat despite large Branch Network, Everything in Stock, Service, Purchasing Power
at 10x FY2018 EPS of 47 shares are worth USD 470
Owns and runs Vienna Airport
Infrastructure asset that cannot be replicated by competition, gate to Eastern Europe.
€ 180 mn FCFe at 4% cap rate translates into a valuation of around 50€ per share.
Holds concession for Eurotunnel connecting France and the UK via rail.
Infrastructure asset that cannot be replicated by competition, 25% of UK trade flows through tunnel.
At 6% 2017e FCFy Eurotunnel´s equity is worth € 4,6 bn or 8.64 per share.