Just flagged up is LSE – London Stock Exchange on a price alert of 960p – putting it at the lowest EV/EBITDA it’s been in a decade.
LSE has operating margins of 65%, a ROE of 20%, and PFCF of 9.6. Adjusted EPS is up 4.8X over the last decade, and has reported only one downturn in earnings during that time. It therefore satisfies Graham’s criteria for stability of earnings. The fear in the stock is that proposals to tighten collateral requirements will reduce net treasury income in the group’s next financial year.
OTOH, how much cheaper do you want it?