Alight (ALIT), mcap=$4.4bn, price $7.91 vs $8.82

Pitch: Mission-critical HR/payroll software provider – market leader serving over half of Fortune 500. Sticky contracts with 15y tenure and 97% retention. Over 83% of revs are recurring. Trades 4x-14x turns cheaper than peers on EBITDA mainly due to previous SPAC taint. Additional upside from continued strategic transformation, targeted margin improvements, bolt-on M&A prospects, and captive 30m+ audience on its platform. There are also ALIT take-out rumors.

Valuation: ALIT trades at 11x EBITDA and 12.5x PE. On 2023 numbers at 9.4x EBITDA and 10.1x PE. Competitors across all segments trade materially higher at 14x-25x EBITDA.

Exp. gain: Not specified.

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