Pitch: Tracking stock for Liberty’s ownership of Atlanta Braves. A bet on the number of billionaires going up while the number of major sports teams in the U.S (that these billionaires want to own as trophies) remains fixed. This is expected to drive the sports team valuations only up. Trades under 20x EV/OBITDA with a hidden asset in the form of developed land worth a quarter of today’s market cap.
Valuation: Forbes assigns team value at $2.1bn. Additional $350m for the developed land at a 6% cap rate. Netting out $552m in net debt results in a $36/share target.
Exp. gain: +40% to $36/share
Full BATRK write-up (free guest account required):