$SPGI

Explicit claim • strong conviction • basis: multiple relative

And its valuation appears more attractive than historically it has been. Forward P/E 21.5, which is significantly lower than the 5-year average of 29. And when we see such a large discrepancy, it always catches my attention.

Explicit claim • strong conviction • basis: drawdown discount

Revenue per share for S&P Global has grown every single year. And it's also incredibly stable, which typically warrants a valuation premium. We can see earnings per share has also grown significantly over the last 5 years along with free cash flow per share. So what does that mean? What happens when a stock sees negative share price appreciation, but during that same time period, earnings continues to grow? Well, really, it's relatively simple. It means the valuation multiple has come down. And for S&P Global, it has certainly come down considerably. They're now essentially trading at their lowest valuation multiple in the last five years.

Explicit claim • strong conviction • basis: market mispricing

But my bet is that this got priced in a little too aggressively and I think that it's not going to be quite as bad for S&P Global as investors are predicting.

Explicit claim • strong conviction • basis: multiple relative

is trading at one of the cheapest multiples in years