For this edition of ValueTeddy’s Write-ups, we are taking a look at the very impressive workings of Lars Wingefors. It is of course Embracer, which in just a few years has acquired its way to a multi-billion SEK market cap. Since its IPO at 9 SEK in November of 2016, it has returned about 2400%, or about a 120% CAGR.
Excellent post. A bit late to read it but it's still very relevant today. I am very excited about the group but arrived at the same conclusion as you, namely that because of all the noise with acquisition costs and how they are amortized or not, I am unable to properly value the business. You'd really have to do sum-of-parts valuation to get comfortable. Still, I am comfortable enough with the general directionality of the business to take a small position that I would grow over time if I see the performance improving.
Excellent post. A bit late to read it but it's still very relevant today. I am very excited about the group but arrived at the same conclusion as you, namely that because of all the noise with acquisition costs and how they are amortized or not, I am unable to properly value the business. You'd really have to do sum-of-parts valuation to get comfortable. Still, I am comfortable enough with the general directionality of the business to take a small position that I would grow over time if I see the performance improving.
Helpful. Thank you!
Great post!