Celanese (CE), mcap=$12.3bn, price $113 vs $121

Pitch:
– High-margin chemical company at 6x-7x current year earnings.
– One business undergoing transformational acquisition and another segment are in an unmatchable global low-cost position.
– Reasonable path to 25% FCF yield.
– Good capital allocation track record.

Valuation:
– Priced at 6x-7x 2022 earnings and 4x Pro-forma EBITDA.
– Expected to generate 25% FCF yield in next 5 years.

Exp. gain: Not specified.

Full $CE write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/CELANESE_CORP/6512411648

Leave a Comment