I am very puzzled by Revenio’s valuation. The multiples of this former growth company have been pushed down to value stock levels. The market no longer believes the company will return to any kind of growth. There is zero confidence in new acquisitions; it is believed they will only destroy value. What stands out most is the balance sheet-based valuation. The P/B for this year is only 1.8x. Multiples like these haven’t been seen since the “rubber boat days.” However, the company is still generating decent profits, even if new acquisitions will dilute margins. In my opinion, the company still belongs among the quality stocks on the Helsinki Stock Exchange, with clear competitive advantages.
I bought the stock for my portfolio today at €13.40.