Advanced Investment Memo (IC Memo)
You are writing an internal investment committee memo for a long/short equity fund. Company (fictional): LedgerLift (ticker: LLLT) – B2B…
LedgerLift (LLLT) — Investment Committee Memo Recommendation: Short 12-month price target: $30–$44 Thesis. LedgerLift has attractive subscription economics, but at $46 the stock prices in substantially more durable cash flow than the supplied operating assumptions produce: base-case DCF value is about $28 per share…Read the full answer
IC MEMO – LedgerLift (LLLT) Short – 12M PT $28 [Range: $17 Bear / $42 Bull] Price: $46 MCap $8.74B EV $7.34B [190m shares, $1.4B net cash] FY25 Rev $820m Thesis in 2 sentences: LLLT is a good mid-market spend/AP SaaS business with strong NRR, but priced for perfection at ~9.3x NTM rev / 37x NTM EBIT vs our Base DCF of…Read the full answer