$FICO

Explicit claim • strong conviction • basis: growth vs multiple

this is a company that trades at 30 times earnings and they're growing those earnings by probably north of 40% for the foreseeable future. And by the way, here is the chart on buybacks. If we take a look, that is the most amount of money they've spent in any single quarter ever. So clearly the management team is telling you that they themselves think that the stock is cheap at the current price as evidenced by the, you know, multi-year lows in terms of valuation.

Explicit claim • strong conviction • basis: multiple relative

Fair Isaac Corporation one of the credit reporting bureaus 52 as their 5-year average for their trading multiple now at 20 year to date still negative 22%.

Explicit claim • strong conviction • basis: fair value gap

I would like to share my intrinsic value calculation with you guys and the intrinsic value for the company, the updated one, I get is $1,600. Current price is at $1,009, or better to say $1,085. So, let's plug that in, $1,085. And you can see we still have a margin of safety of 50% with this intrinsic value, and this is why I'm going to open, or most likely going to open a first position in the stock as soon as tomorrow.

Explicit claim • strong conviction • basis: multiple relative

So FICO is definitely not the lowest risk idea, but if you want a quality compounder that has been hit hard enough to come much more interesting, this is one of the stronger candidates. 26% margin of safety, Wall Street seen near double, 93% upside, $1,840 over the next year.