Betterware de Mexico SA de CV (BWMX)

[Renegades17]

Comparable valuation

This company compares very favorably to MercadoLibre, which trades at 16x revenue and is EBITDA negative. Both companies are growing revenues at similar rates, but BWMX has much better margins and cash conversion. It also has a dividend yield of 13+%!

At 8x revenue, BWMX would be valued at $57 per share. That would be a PE of ~40x.

Any way you look at it, BWMX is extraordinarily undervalued and should have great downside support.