Euronet's Valuation Has Improved, But So Has The Business

I had a nice little thing going with Euronet (NASDAQ:EEFT). I'd write about this largely unknown operator of ATMs, convenience payment services and money transfers every six to 12 months; the shares would be around 10% undervalued, they'd go up around 10%, and we'd do it all over again.

Although I don't see quite the same level of undervaluation as in past updates, I still believe it's a good company trading a little bit below fair value. In my investing experience, it has generally worked out better to buy a good company that's a little bit cheap than to buy an inferior company that's trading at a wider apparent discount to fair value. I'd also note that there are visible catalysts that could improve both the ATM and money transfer businesses in the relatively near future and drive higher earnings expectations.

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Euronet's Valuation Has Improved, But So Has The Business