Extrene value under $6

I hate AGL and never been a holder until today it's a poorly run utility that under $6 and on a free cashflow multiple of about 3.5 times is very cheap.

It's been falling like a stone and the clincher for buying is being kicked out of the ASX50 index funds have to sell presenting an oversold stock in my eyes.

Look at the numbers only similar to a private equity buyout firm and block out the environmental and coal noise for a second.

MKT CAP 3.6 bill

Debt $3 Bill

Cash generation $1.66 billion

EPS 86.2 cents

Price $5.91 and been kicked out of ASX 50 index so forced selling happening ATM.

Splitting up next quarter into 2 businesses tell me it’s not cheap, the way i see it either it gets a bid before the split or post the split bids will come into play.

Infrastructure and utilities are the key assets cashed up superfunds and private equity like with huge cashflows.

Thoughts?

I think anything under around $8 is a steal so brought some for a calculated punt on simple cashflow metrics alone, scrap the dividend and debt paid off in 2.5 years or keep paying them and yield 11%