Italmobiliare (ITM.MI), mcap=€1.1bn, price €26.85 vs €26.80

– Italian holding company trading at 61% discount to fair value SOTP.
– Management with a great M&A track record resulting in 50% portfolio level IRR for core investments.
– Strong corporate governance and responsible overhead burden.
– Similar high-quality European peers at limited discounts to NAV.
– Upside from continued NAV growth and narrowing of the discount driven by recognition of the value of  ITM.MI’s investments.

– Trades at 46% discount to the company’s stated NAV and 61% discount to fair value NAV.
– European holding companies trade at a median 18% discount to NAV, with higher quality peers at zero discounts.
– At a 10% discount to NAV, ITM offers an attractive 3.4x return over 5 years.

Exp. gain: 3.4x over 5 years

Full $ITM.MI write-up (free guest account required):

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