With Brookfield Asset Management Inc. (BAM) selling 20 million shares of GrafTech International (EAF), investors may believe that the shares are overvalued. However, research on the graphite electrode products shows that the stock returns could continue. In addition, with shares trading at 7.9x 2019 EBITDA and impressive sales and CFO increases, GrafTech is gaining a lot of momentum. Finally, the fact that GrafTech will be repurchasing $225 million in its stock at $21.04 per share is also another great feature. It shows that the company believes the shares may be undervalued.
(Source: Prospectus)