Thursday, May 21, 2015

Seeking Alpha: Not Simple To Value, Compass Diversified Holdings Looks Appealing Nonetheless

Conglomerates have always presented investors with valuation challenges, as few companies provide the level of detail necessary to value the components and even those that do often lack proper benchmarks. Compass Diversified Holdings (NYSE:CODI) adds some additional challenges and questions to the mix, including how to value management's value creation efforts and whether to factor an investor's tax status into the mix.

Compass is limited to some extent as an investment candidate by a lack of coverage and the added work that goes into getting a fair sense of the per-share value. I think the added work is worth it, though, as I believe these shares are worth around $20.

Read more here:
Not Simple To Value, Compass Diversified Holdings Looks Appealing Nonetheless

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