MCFE - McAfee Is Much More Valuable Than It Looks
- With D&A $330 million higher than CapEx in the first 9 months of 2020, McAfee appears to be barely profitable while it is generating significant cash.
- McAfee is currently trading at x14 times FCF while growing revenues at a decent pace, making it a bargain in this market.
- Even though it is losing market share in the enterprise market due to high competition, growth in the consumer market more than makes up for this loss.
- A conservative model gives us a fair value per share of $25.89, 51.5% above the current value of $17.10.
For further details see:
McAfee Is Much More Valuable Than It Looks