MTS is cRaZy undervalued at the moment for a well established, profitable company.
The net assets of the company are $1.6 billion with 903 million shares on issue. This means a book value of $1.77 per share (ignoring for a moment the profits that the company makes).
That's like buying a successful pub and only paying for its inventory, tables, and stools.
One possible area of concern is around their intangible assets made up of goodwill and brand names totalling $1.7 billion. But according to accounting standards, the value of intangible assets needs to be assessed every 6 months, and this value is required to be independently reviewed by auditors. If the carrying value of these assets are not justified, then a write is performed.
Being a profitable company, and with regularly audits, I do not see MTS writing down any of their intangible assets in the near future, so their balance sheet is sound.
Factoring in just 3 years' net profit, at a conservative $160M per year, the SP of MTS should be around $2.35.
In conclusion, this is a great time to buy and hold
MTS Price at posting:
$1.54 Sentiment: Buy Disclosure: Held
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