– Corporate learning management software company.
– Trades at 4.5-5x fwd revenue with 30% organic growth and mild cash generation.
– Runway to grow 25-35% for some time.
– Best-in-class S&M efficiency should help the company reach 25-35% mature FCF margins.
– Assuming 30% mature FCF margins, would result in an FCF yield of 6.5%.
– Quality peers trade at a 4% yield, suggesting DCBP could re-rate from 5x to 7.5x revenue.
Exp. gain: 50% upside from multiple re-rating.
Full DCBO write-up (free guest account required):