Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

Analysis on GARP with strong economic moats

GARP with strong economic moats

Equity Bottom-Up

<ul><li>QRTEA has deceptively low price-based multiples in comparison to other firms in the industry due to assets that are mostly composed of goodwill and intangibles.</li><li>Based on our Asset Valuation, Earnings Power model and Free Cash Flow analysis, Qurate seems to be fairly valued.</li><li>We believe that free cash flow growth will primarily depend on management's ability to transition to growth from e-commerce.</li><li>The long-term debt inherent in the business is a cause for concern during times of EBIT and multiple compression.</li></ul>

QRTEA has deceptively low price-based multiples in comparison to other firms in the industry due to assets that are mostly composed of goodwill and intangibles.Based on our Asset Valuation, Earnings Power model and Free Cash Flow analysis, Qurate seems to be fairly valued.We believe that free cash flow growth will primarily depend on management's ability to transition to growth from e-commerce.The long-term debt inherent in the business is a cause for concern during times of EBIT and multiple compression.

Qurate Retail: Leaning More Towards The Value Trap Argument Than A Value Opportunity

Qurate Retail Inc

Qurate Retail: Leaning More Towards The Value Trap Argument Than A Value Opportunity