Title: Buy-Hold-Sell List: August 2026 Show: Compounding Quality (Substack, paid post — compoundingquality.net) Guest: Pieter Slegers / Team Compounding Quality (byline "Compounding Quality") Date: 2026-08-23 URL: https://www.compoundingquality.net/p/buy-hold-sell-list-august-2026 Length: written post — no timestamps Note: Paid-subscriber post captured via Stephen's logged-in session. Body text verbatim; UI chrome removed. Charts noted inline as [Image — ...]. The post's substance is in its spreadsheet screenshots, which are transcribed below as [Table image — ...] blocks read directly from the images: the 10 worst and 10 best YTD performers of the investable universe, the "55 Stocks to Buy" sheet (every name with ticker, currency, advice and the three valuation models), the three most-undervalued lists (Forward PE, Earnings Growth Model, Reverse DCF), the "62 companies undervalued on each valuation method" sheet, and Our Portfolio's own valuation sheet with the per-holding Advice column (BUY / STRONG BUY / HOLD). Internal inconsistency worth flagging: the prose says Dino Polska and Novo Nordisk moved from BUY to HOLD, and neither appears on the 55-stock Buy sheet — but both are still marked BUY on the portfolio sheet and both appear in the post's own list of "19 out of the 21 companies that we own [that] are a 'Buy'".
It's time to update our watchlist.
The Buy-Hold-Sell List helps you track Our Investable Universe and find great businesses at attractive prices.
Let's take a look at some amazing investment opportunities.
From tech to rocks
Chris Hohn is one of the best investors in the world.
His hedge fund, TCI made almost $20 billion (!) last year.
He only invests in businesses that control essential pieces of the economy (tollroad companies).
You can learn everything about him here.
TCI just updated its holdings for the second quarter.
Sir Chris Hohn made a big move:
TCI fully exited its position in Microsoft
It built large positions in Martin Marietta ($MLM) and Vulcan Materials ($VMC).
At the end of 2025, Microsoft was the third largest holding of TCI.
[Image — TCI holdings, Source: Fiscal.ai]
If you've never heard of Martin Marietta and Vulcan Materials, I wouldn't be surprised.
They are the two largest produces of aggregates (things like gravel, crushed stone, and sand) in the U.S.
Why is one of the world's top investors dumping one of the biggest tech companies in the world to buy rocks and gravel?
It's actually very simple: the moat.
Hohn said that he thinks AI could disrupt Office and Azure faster than the market thinks.
AI will have a very hard time disrupting a gravel pit.
The more boring the better?
Have you ever read One Up On Wall Street?
Peter Lynch told us exactly why gravel pits have a strong moat:
Rocks, sand, and gravel are cheap commodities on their own. They can sell for just a few dollars per ton.
The real moat for an aggregates business is its location.
These companies are essentially local tollbooths. And that's a business model Chris Hohn loves.
Here's one more example of how boring businesses can deliver exciting returns.
Can you guess which stock delivered the highest return between 1925 and 2023?
If you guessed Martin Marietta or Vulcan Materials, I'm sorry to say you're wrong.
It was Altria, the company behind Marlboro cigarettes, with a return of more than 16% per year.
If you bought Altria 98 years ago, $1 would have turned into $2.7 million. It's time in the market that matters. Not timing the market.
And number 2? Just after Altria?
[Image — Source: Which U.S. Stocks Generated the Highest Long-Term Returns?]
It's Vulcan.
If you bought Vulcan Materials 98 years ago, $1 would have turned into almost $400,000.
Compounding is the most powerful force in the world. But it takes time to work.
That means the businesses you invest in need to survive and grow for decades.
For Quality investors like us, the moat is extremely important.
Update Buy-Hold-Sell List: July 2026
Our Buy-Hold-Sell List is packed with durable, high-quality businesses.
While Mr. Market is distracted by AI and momentum stocks, some of these businesses are trading at very attractive prices.
Let's review the list and see what opportunities Mr. Market is offering us today.
Worst performers
Here are the 10 worst performers on our watchlist so far this year:
[Table image — 10 worst performers YTD (Company / YTD / 5 Year CAGR / 10 Year CAGR): CoStar Group, Inc. -52.1% / -17.7% / 4.4% EPAM Systems, Inc. -50.3% / -30.6% / 4.1% Kelly Partners Group Holdings Limited -47.6% / 7.4% / 13.7% lululemon athletica inc. -44.8% / -21.6% / 4.0% Zoetis Inc. -42.9% / -18.1% / 3.2% Rollins, Inc. -39.0% / 0.3% / 11.2% Wavestone SA -37.5% / -4.1% / 5.6% Admicom Oyj -36.4% / -19.8% / 11.7% Fair Isaac Corporation -34.2% / 18.8% / 24.0% InfraCom Group AB (publ) -31.5% / -1.9% / 13.0%]
Best performers
The 10 best performers look as follows:
[Table image — 10 best performers YTD (Company / YTD / 5 Year CAGR / 10 Year CAGR): Fortinet, Inc. 101.4% / 21.3% / 36.7% LEM Holding SA 95.5% / -22.5% / -5.8% Keysight Technologies, Inc. 76.4% / 17.2% / 28.5% ASML Holding N.V. 60.2% / 20.0% / 32.7% Cactus, Inc. 55.1% / 17.9% / 16.2% Garmin Ltd. 52.0% / 15.4% / 18.8% CarMax, Inc. 51.7% / -14.1% / 0.1% Arista Networks, Inc. 49.0% / 54.2% / 45.0% Paycom Software, Inc. 40.6% / -13.8% / 15.8% Qualys, Inc. 39.3% / 10.7% / 18.8%]
Changes to the Buy-Hold-Sell list
This week, we made some changes to our Buy-Hold-Sell List.
We moved 3 companies from HOLD to BUY:
Alphabet ($GOOGL): Google's parent company focused on internet search, AI, and digital advertising
Hermès ($RMS): French luxury goods manufacturer
Teqnion ($TEQ): Swedish industrial conglomerate
2 companies went from BUY to HOLD due to increasing competition:
Dino Polska ($DNP): Polish grocery retail chain
Novo Nordisk ($NVO): Pharmaceutical company focused on insulin and GLP-1 drugs
1 company moved from HOLD to SELL due to valuation concerns:
Williams-Sonoma ($WSM): Home furnishings and kitchenwares retailer
Currently there are 55 stocks on 'Buy'.
You can download the entire Buy-Hold-Sell List here: Buy-Hold-Sell List
55 Stocks to Buy
You can see all the companies that are on 'Buy' right now here. (Click on the picture to expand):
[Table image — "55 Stocks to Buy" sheet. Columns: Company / Ticker / Currency / Advice / [Earnings Growth Model:] EPS Growth, Dividend Yield, FWD PE, Fair exit PE, Expected Return / [Forward PE:] Current Forward PE, Average Forward PE past 5 years, Over/Undervaluation / [Reverse DCF:] Required growth, Expected growth, Difference / YTD / 5 Year CAGR / 10 Year CAGR. Every row's Advice is BUY. Adobe Inc. — ADBE USD — 12.30% / 0.00% / 8.50 / 15.00 / 19.95% — 8.50 / 24.00 / 64.60% — 0.40% / 12.30% / 11.90% — YTD -23.70% / -16.70% / 9.80% Adyen N.V. — ADYEN EUR — 15.00% / 0.00% / 24.90 / 25.00 / 15.04% — 24.90 / 64.30 / 61.30% — 9.50% / 15.00% / 5.50% — YTD -26.40% / -15.40% / 10.50% Alarm.com Holdings, Inc. — ALRM USD — 6.90% / 0.00% / 15.90 / 25.00 / 12.62% — 15.90 / 33.30 / 52.30% — 3.50% / 6.90% / 3.40% — YTD 7.60% / -7.00% / 6.30% Ameriprise Financial, Inc. — AMP USD — 9.80% / 1.20% / 11.00 / 11.70 / 11.64% — 11.00 / 11.70 / 6.00% — 4.00% / 9.80% / 5.80% — YTD 14.50% / 17.70% / 19.20% Automatic Data Processing, Inc. — ADP USD — 6.03% / 2.50% / 17.30 / 25.00 / 12.98% — 17.30 / 27.90 / 38.00% — 6.70% / 6.00% / -0.70% — YTD 5.50% / 6.70% / 11.60% Berkshire Hathaway Inc. — BRK.A USD — 8.50% / 0.00% / 23.30 / 20.00 / 7.08% — 23.30 / 22.50 / -3.60% — 18.10% / 8.50% / -9.60% — YTD 1.10% / 11.50% / 12.90% Brookfield Corporation — BN USD — 12.00% / 0.60% / 46.00 / 68.00 / 17.38% — 46.00 / 45.00 / -2.20% — 8.30% / 12.00% / 3.70% — YTD -6.70% / 10.70% / 14.00% Brown & Brown, Inc. — BRO USD — 10.20% / 0.90% / 14.60 / 20.00 / 14.80% — 14.60 / 24.70 / 40.90% — 5.10% / 10.20% / 5.10% — YTD -10.50% / 4.90% / 14.30% Columbia Sportswear Company — COLM USD — 8.00% / 2.10% / 17.40 / 19.40 / 11.25% — 17.40 / 19.40 / 10.30% — 1.60% / 8.00% / 6.40% — YTD 1.30% / -9.40% / 0.10% Computer Modelling Group Ltd. — CMG CAD — 5.00% / 1.00% / 13.60 / 20.00 / 10.71% — 13.60 / 25.40 / 46.50% — 0.50% / 5.00% / 4.50% — YTD -28.40% / 0.90% / -8.90% Constellation Software Inc. — CSU CAD — 15.00% / 0.20% / 15.80 / 20.00 / 17.86% — 15.80 / 31.50 / 49.80% — 9.20% / 15.00% / 5.80% — YTD -4.80% / 8.90% / 19.10% Copart, Inc. — CPRT USD — 11.90% / 0.00% / 20.90 / 25.00 / 13.86% — 20.90 / 30.70 / 31.90% — 8.30% / 11.90% / 3.60% — YTD -15.60% / -1.70% / 17.40% Deckers Outdoor Corporation — DECK USD — 7.00% / 0.00% / 14.00 / 21.30 / 12.21% — 14.00 / 21.30 / 34.30% — 0.00% / 7.00% / 7.00% — YTD -15.20% / 5.20% / 23.20% Domino's Pizza, Inc. — DPZ USD — 9.40% / 2.30% / 19.10 / 25.00 / 14.79% — 19.10 / 27.50 / 30.50% — 5.80% / 9.40% / 3.60% — YTD -19.70% / -7.00% / 9.00% Esquire Financial Holdings, Inc. — ESQ USD — 13.50% / 0.60% / 16.00 / 15.00 / 13.48% — 16.00 / 11.90 / -34.50% — 6.00% / 13.50% / 7.50% — YTD 25.90% / 39.00% / 26.10% Evolution AB (publ) — EVO SEK — 5.70% / 5.00% / 11.00 / 15.00 / 14.34% — 11.00 / 15.00 / 26.70% — 1.50% / 5.70% / 4.20% — YTD 27.00% / -8.90% / 31.50% Fairfax Financial Holdings Limited — FFH CAD — 11.00% / 0.90% / 9.10 / 8.00 / 10.69% — 9.10 / 8.00 / -13.80% — -3.20% / 11.00% / 14.20% — YTD -13.00% / 33.90% / 12.00% Fair Isaac Corporation — FICO USD — 10.00% / 0.00% / 22.70 / 25.00 / 11.01% — 22.70 / 40.90 / 44.50% — 13.00% / 10.00% / -3.00% — YTD -34.20% / 18.80% / 24.00% Fortinet, Inc. — FTNT USD — 12.00% / 0.00% / 28.90 / 25.00 / 10.65% — 28.90 / 42.70 / 32.30% — 18.40% / 12.00% / -6.40% — YTD 101.40% / 21.30% / 36.70% Gartner, Inc. — IT USD — 8.00% / 0.00% / 11.40 / 25.00 / 19.93% — 11.40 / 33.40 / 65.90% — -2.00% / 8.00% / 10.00% — YTD -26.70% / -10.90% / 6.70% Hamilton Lane Incorporated — HLNE USD — 3.40% / 2.30% / 15.10 / 25.00 / 12.26% — 15.10 / 25.50 / 40.80% — 5.60% / 3.40% / -2.20% — YTD -24.70% / 4.80% / 20.20% Intercontinental Exchange, Inc. — ICE USD — 12.00% / 1.30% / 19.50 / 21.90 / 14.53% — 19.50 / 21.90 / 11.00% — 7.90% / 12.00% / 4.10% — YTD -3.50% / 7.00% / 11% Interparfums, Inc. — IPAR USD — 10.00% / 2.80% / 18.60 / 25.00 / 13.55% — 18.60 / 26.30 / 29.30% — 3.30% / 10.00% / 6.70% — YTD 32.70% / 12.40% / 12.80% Kainos Group plc — KNOS GBp — 11.90% / 3.10% / 17.10 / 25.00 / 19.62% — 17.10 / 28.70 / 40.40% — 11.5% / 11.9% / 0.4% — YTD -1.90% / -9.90% / 19.10% Karooooo Ltd. — KARO USD — 9.60% / 2.40% / 21.70 / 23.00 / 12.60% — 21.70 / 23.00 / 5.70% — 18.80% / 9.60% / -9.20% — YTD 38.30% / 15.80% / 11.70% Kelly Partners Group Holdings Limited — KPG AUD — 12.00% / 0.00% / 18.10 / 25.00 / 15.81% — 18.10 / 29.30 / 38.20% — 7.00% / 12.00% / 5.00% — YTD -47.60% / 7.40% / 13.70% Kinsale Capital Group, Inc. — KNSL USD — 11.00% / 0.30% / 17.20 / 20.00 / 12.93% — 17.20 / 28.60 / 39.90% — 0.70% / 11.00% / 10.30% — YTD -4.90% / 15.50% / 34.20% KKR & Co. Inc. — KKR USD — 9.75% / 0.70% / 16.20 / 17.90 / 11.50% — 16.20 / 17.90 / 9.50% — 4.60% / 9.80% / 5.20% — YTD -14.80% / 12.50% / 22.30% lululemon athletica inc. — LULU USD — 7.40% / 0.00% / 11.20 / 25.00 / 19.72% — 11.20 / 33.10 / 66.20% — -0.40% / 7.40% / 7.80% — YTD -44.80% / -21.60% / 4.00% Markel Group Inc. — MKL USD — 12.00% / 0.00% / 18.70 / 17.60 / 11.41% — 18.70 / 17.60 / -6.20% — 0.70% / 12.00% / 11.30% — YTD -14.80% / 7.50% / 7.00% Mastercard Incorporated — MA USD — 15.00% / 0.60% / 26.80 / 25.00 / 14.93% — 26.80 / 32.60 / 17.80% — 13.70% / 15.00% / 1.30% — YTD 0.30% / 9.90% / 19.40% Medpace Holdings, Inc. — MEDP USD — 12.00% / 0.00% / 29.70 / 25.00 / 10.42% — 29.70 / 29.40 / -1.00% — 13.30% / 12.00% / -1.30% — YTD 2.50% / 26.60% / 35.40% MercadoLibre, Inc. — MELI USD — 15.00% / 0.00% / 36.30 / 25.00 / 11.89% — 36.30 / 48.40 / 25.00% — 8.70% / 15.00% / 6.30% — YTD -9.20% / 15.00% / 26.80% Microsoft Corporation — MSFT USD — 15.00% / 0.70% / 24.50 / 25.00 / 15.90% — 24.50 / 30.10 / 18.60% — 17.50% / 15.00% / -2.50% — YTD 2.50% / 11.50% / 23.70% Mips AB (publ) — MIPS SEK — 15.00% / 0.60% / 30.50 / 25.00 / 13.80% — 30.50 / 59.60 / 48.80% — 25.70% / 15.00% / -10.70% — YTD 15.40% / -14% / 24% Moody's Corporation — MCO USD — 11.50% / 0.80% / 27.60 / 25.00 / 11.36% — 27.60 / 32.70 / 15.60% — 13.10% / 11.50% / -1.60% — YTD -4.10% / 5.60% / 16.50% MSCI Inc. — MSCI USD — 12.50% / 1.40% / 29.20 / 25.00 / 12.46% — 29.20 / 39.60 / 26.30% — 13.10% / 12.50% / -0.60% — YTD -1.30% / -1.30% / 20.40% Napco Security Technologies, Inc. — NSSC USD — 12.90% / 1.60% / 30.50 / 25.00 / 12.70% — 30.50 / 29.00 / -5.20% — 11.80% / 12.90% / 1.10% — YTD -7.70% / 18.40% / 26.40% Pool Corporation — POOL USD — 8.12% / 2.70% / 21.20 / 25.00 / 12.61% — 21.20 / 27.30 / 22.30% — 6.80% / 8.10% / 1.30% — YTD -17.80% / -15.80% / 6.50% Qualys, Inc. — QLYS USD — 4.41% / 0.00% / 12.10 / 25.00 / 15.07% — 12.10 / 30.10 / 59.80% — 13.70% / 4.40% / -9.30% — YTD 39.30% / 10.70% / 18.80% RH — RH USD — 11.00% / 0.00% / 25.00 / 25.00 / 11.00% — 25.00 / 25.80 / 3.10% — 5.80% / 11.00% / 5.20% — YTD -9.10% / -23.90% / 19.30% Sanlorenzo S.p.A. — SL EUR — 6.00% / 2.60% / 10.90 / 14.20 / 11.63% — 10.90 / 14.20 / 23.20% — 2.90% / 6.00% / 3.10% — YTD 28.20% / 10.10% / 14.20% Sonova Holding AG — SOON CHF — 5.40% / 2.00% / 19.60 / 25.00 / 10.16% — 19.60 / 25.60 / 23.40% — 10.40% / 5.40% / -5.00% — YTD 14.80% / -6.10% / 5.70% S&P Global Inc. — SPGI USD — 11.50% / 0.90% / 22.30 / 25.00 / 13.61% — 22.30 / 29.50 / 24.40% — 10.40% / 11.50% / 1.10% — YTD -19.20% / 0.60% / 13.20% SS&C Technologies Holdings, Inc. — SSNC USD — 10.50% / 1.30% / 10.30 / 13.00 / 14.42% — 10.30 / 13.00 / 20.80% — 2.20% / 10.50% / 8.30% — YTD -6.10% / 2.50% / 9.80% Tatton Asset Management plc — TAM GBp — 10.00% / 4.30% / 16.40 / 20.00 / 16.50% — 16.40 / 22.50 / 27.10% — 7.60% / 10.00% / 2.40% — YTD 4.50% / 5.30% / 1.40% Topicus.com Inc. — TOI CAD — 15.00% / 0.00% / 25.60 / 25.00 / 14.77% — 25.60 / 49.20 / 48.00% — 9.30% / 15.00% / 5.70% — YTD -19.10% / 12.70% / 8.80% TransDigm Group Incorporated — TDG USD — 10.70% / 7.20% / 30.80 / 25.00 / 16.02% — 30.80 / 34.70 / 11.20% — 15.10% / 10.70% / -4.40% — YTD -9.10% / 12.70% / 15.80% Visa Inc. — V USD — 13.50% / 0.70% / 23.40 / 25.00 / 14.88% — 23.40 / 28.30 / 17.30% — 14.10% / 13.50% / -0.60% — YTD 4.40% / 9.90% / 16.20% XPEL, Inc. — XPEL USD — 15.00% / 0.00% / 22.00 / 20.00 / 14.09% — 22.00 / 32.60 / 32.50% — 4.50% / 15.00% / 10.50% — YTD -0.50% / -7.30% / 36.60% Zoetis Inc. — ZTS USD — 6.95% / 2.90% / 16.20 / 25.00 / 15.28% — 16.20 / 31.70 / 48.90% — -0.40% / 7.00% / 7.40% — YTD -42.90% / -18.10% / 3.20% 3i Group plc — III USD — 11.00% / 3.00% / 25.66 / 30.00 / 15.69% — 25.66 / 30.20 / 14.90% — 9.80% / 11.00% / 1.20% — YTD -13.00% / 19.40% / 16.20% Alphabet Inc. — GOOGL USD — 15.00% / 0.30% / 29.90 / 25.00 / 13.66% — 29.90 / 22.40 / -33.50% — 22.60% / 15.00% / -7.60% — YTD 8.30% / 20.20% / 24.20% Hermès International Société en commandite par actions — RMS EUR — 11.90% / 1.10% / 35.70 / 25.00 / 10.00% — 35.70 / 48.30 / 26.10% — 18.40% / 11.90% / -6.90% — YTD -26.20% / 4.10% / 14.70% Teqnion AB (publ) — TEQ SEK — 8.00% / 0.00% / 31.40 / 25.00 / 5.96% — 31.40 / 45.30 / 31% — 11.80% / 8.00% / -3.80% — YTD 3.70% / 12.50% / 23.90%]
19 out of the 21 companies that we own are a 'Buy' right now:
Medpace Holdings ($MEDP) Evolution AB ($EVO) Kelly Partners Group ($KPG) Brown & Brown ($BRO) Dino Polska ($DNP) Kinsale Capital ($KNSL) Interparfums ($IPAR) Ameriprise Financial ($AMP) Visa ($V) Topicus ($TOI) HgCapital Trust ($HGT) Novo Nordisk ($NVO) Constellation Software ($CSU) Brookfield Corporation ($BN) Zoetis ($ZTS) 3i Group ($III) KKR & Co. ($KKR) S&P Global ($SPGI) Fairfax Financial ($FFH)
I truly believe some great opportunities can be found in the list above.
1. Forward P/E
Here are the most undervalued companies based on the Forward P/E:
[Table image — most undervalued on Forward PE (Company / Current Forward PE / Average Forward PE past 5 years / Over-Undervaluation): Goosehead Insurance, Inc. 20.80 / 76.00 / 72.60% Paycom Software, Inc. 12.20 / 43.80 / 72.10% EPAM Systems, Inc. 8.80 / 30.80 / 71.40% Paylocity Holding Corporation 13.70 / 42.70 / 67.90% CorVel Corporation 29.20 / 87.00 / 66.40% lululemon athletica inc. 11.20 / 33.10 / 66.20% Gartner, Inc. 11.40 / 33.40 / 65.90% CoStar Group, Inc. 25.20 / 73.20 / 65.60% Adobe Inc. 8.50 / 24.00 / 64.60% Adyen N.V. 24.90 / 64.30 / 61.30%]
Adyen is trading near its lowest valuation level ever:
[Image — Adyen valuation history, Source: Fiscal.ai]
In the first half of 2026, Adyen made the first two acquisitions in its history:
Talon.One: A loyalty platform bought for €750 million.
Orb: An enterprise billing platform bought for €335 million.
Some investors worry that these deals could signal slower organic growth.
They also worry that the acquisitions could make Adyen's business more complicated.
That matters because Adyen's biggest strength has always been its simple, unified payments platform.
You can even see how much Adyen values simplicity in the design of its presentations:
[Image — Source: Adyen Investor Relations]
But there's a reason to be optimistic.
Neither acquisition changes Adyen's core payments platform.
Instead, they add new services around it.
Orb strengthens Adyen's position in usage-based billing, which is becoming increasingly important for AI and SaaS companies.
Talon.One adds loyalty and marketing tools.
Together, these businesses could help Adyen sell more services to its existing customers.
Adyen has already raised its full-year revenue guidance to reflect the acquisitions. It now expects constant-currency revenue growth of more than 20%.
[Image — Source: Fiscal.ai]
For long-term investors, Adyen's recent drop in valuation could create an interesting opportunity.
2. Earnings Growth Model
Here are the most undervalued companies based on our Earnings Growth Model:
[Table image — most undervalued on the Earnings Growth Model (Company / EPS Growth / Dividend Yield / FWD PE / Fair exit PE / Expected Return): Marimekko Oyj 9.50% / 4.40% / 15.00 / 25.00 / 20.57% FactSet Research Systems Inc. 6.90% / 1.60% / 11.50 / 25.00 / 20.24% Adobe Inc. 12.30% / 0.00% / 8.50 / 15.00 / 19.95% Gartner, Inc. 8.00% / 0.00% / 11.40 / 25.00 / 19.93% lululemon athletica inc. 7.40% / 0.00% / 11.20 / 25.00 / 19.72% Kainos Group plc 11.90% / 3.10% / 17.10 / 25.00 / 19.62% Ares Management Corporation 12.00% / 3.70% / 18.20 / 25.00 / 19.44% Enghouse Systems Limited 1.80% / 7.30% / 12.30 / 25.00 / 19.43% Paycom Software, Inc. 12.30% / 0.70% / 12.20 / 20.00 / 19.39% TransUnion 13.90% / 0.60% / 14.70 / 21.80 / 19.33%]
Adyen shows up here as well.
That's not too surprising. Adyen has grown its EPS by 35% per year over the past nine years.
Analysts also expect Adyen's EPS to keep growing at an attractive rate.
[Image — Source: Fiscal.ai]
3. Reverse DCF
Here's a list of the most undervalued companies based on Our Reverse DCF:
[Table image — most undervalued on the Reverse DCF (Company / Required growth reverse DCF / Expected growth / Difference): Equasens Société anonyme -2.60% / 12.70% / 15.30% Fairfax Financial Holdings Limited -3.20% / 11.00% / 14.20% Dream Finders Homes, Inc. -2.9% / 10.0% / 12.9% InfraCom Group AB (publ) -3.80% / 9.00% / 12.80% Insperity, Inc. -5.50% / 7.00% / 12.50% New Wave Group AB (publ) 2.80% / 15.00% / 12.20% Adobe Inc. 0.40% / 12.30% / 11.90% Markel Group Inc. 0.70% / 12.00% / 11.30% CTS Eventim AG & Co. KGaA -3.30% / 7.70% / 11.00% TransUnion 3.10% / 13.90% / 10.80% XPEL, Inc. 4.50% / 15.00% / 10.50% HCA Healthcare, Inc. -2.00% / 8.40% / 10.40% Kinsale Capital Group, Inc. 0.70% / 11.00% / 10.30%]
You can see two companies from Our Portfolio mentioned on this list: Fairfax Financial and Kinsale Capital.
The Big Picture
Today, 62 companies are undervalued on each valuation method.
[Table image — the 62 companies undervalued on all three methods, ranked by the reverse-DCF Difference column (Company / Fair value / Stock price / Over-Undervaluation / Current Forward PE / Average Forward PE past 5 years / Over-Undervaluation / Required growth reverse DCF / Expected growth / Difference): InfraCom Group AB (publ) 27.20 / 17.00 / 37.60% — 10.40 / 12.50 / 16.80% — -3.80% / 9.00% / 12.80% Insperity, Inc. 134.00 / 51.08 / 61.87% — 10.40 / 25.20 / 58.70% — -5.50% / 7.00% / 12.50% Adobe Inc. 777.10 / 254.31 / 67.28% — 8.50 / 24.00 / 64.60% — 0.40% / 12.30% / 11.90% CTS Eventim AG & Co. KGaA 69.20 / 57.62 / 16.70% — 17.00 / 27.10 / 37.30% — -3.30% / 7.70% / 11.00% TransUnion 213.50 / 79.18 / 62.91% — 14.70 / 21.80 / 32.60% — 3.10% / 13.90% / 10.80% XPEL, Inc. 90.90 / 50.00 / 45.00% — 22.00 / 32.60 / 32.50% — 4.50% / 15.00% / 10.50% Kinsale Capital Group, Inc. 499.00 / 373.35 / 25.18% — 17.20 / 28.60 / 39.90% — 0.70% / 11.00% / 10.30% Gartner, Inc. 317.50 / 173.75 / 45.28% — 11.40 / 33.40 / 65.90% — -2.00% / 8.00% / 10.00% Paycom Software, Inc. 502.00 / 214.34 / 57.30% — 12.20 / 43.80 / 72.10% — 2.40% / 12.30% / 9.90% Thermador Groupe SA 154.60 / 76.50 / 50.52% — 12.90 / 14.60 / 11.60% — 2.60% / 11.70% / 9.10% Wavestone SA 38.70 / 34.35 / 11.20% — 13.40 / 16.90 / 20.70% — -1.30% / 7.40% / 8.70% The Progressive Corporation 229.50 / 205.86 / 10.32% — 11.80 / 19.70 / 40.10% — -6.70% / 2.00% / 8.70% SS&C Technologies Holdings, Inc. 123.90 / 80.48 / 35.03% — 10.30 / 13.00 / 20.80% — 2.20% / 10.50% / 8.30% SDI Group plc 1.50 / 0.90 / 39.26% — 9.90 / 16.30 / 39.30% — 2.10% / 10.00% / 7.90% lululemon athletica inc. 206.00 / 116.30 / 43.55% — 11.20 / 33.10 / 66.20% — -0.40% / 7.40% / 7.80% Zoetis Inc. 109.20 / 71.84 / 34.23% — 16.20 / 31.70 / 48.90% — -0.40% / 7.00% / 7.40% Deckers Outdoor Corporation 106.00 / 90.58 / 14.55% — 14.00 / 21.30 / 34.30% — 0.00% / 7.00% / 7.00% Interparfums, Inc. 169.40 / 113.42 / 33.04% — 18.60 / 26.30 / 29.30% — 3.30% / 10.00% / 6.70% Marimekko Oyj 26.30 / 9.63 / 63.40% — 15.00 / 26.10 / 42.50% — 3.10% / 9.50% / 6.40% Columbia Sportswear Company 63.90 / 56.76 / 11.21% — 17.40 / 19.40 / 10.30% — 1.60% / 8.00% / 6.40% MercadoLibre, Inc. 2469.50 / 1792.84 / 27.40% — 36.30 / 48.40 / 25.00% — 8.70% / 15.00% / 6.30% Interpump Group S.p.A. 52.20 / 36.46 / 30.15% — 16.80 / 19.00 / 11.60% — 4.90% / 11.10% / 6.20% Constellation Software Inc. 8133.10 / 3084.07 / 62.08% — 15.80 / 31.50 / 49.80% — 9.20% / 15.00% / 5.80% Equifax Inc. 509.90 / 179.03 / 64.89% — 23.10 / 29.60 / 22.00% — 9.20% / 15.00% / 5.80% Ameriprise Financial, Inc. 668.40 / 565.53 / 15.38% — 11.00 / 11.70 / 6.00% — 4.00% / 9.80% / 5.80% Topicus.com Inc. 197.60 / 101.18 / 48.80% — 25.60 / 49.20 / 48.00% — 9.30% / 15.00% / 5.70% Adyen N.V. 2063.90 / 1027.80 / 50.20% — 24.90 / 64.30 / 61.30% — 9.50% / 15.00% / 5.50% KKR & Co. Inc. 127.10 / 109.86 / 13.57% — 16.20 / 17.90 / 9.50% — 4.60% / 9.80% / 5.20% RH 195.20 / 175.72 / 10.00% — 25.00 / 25.80 / 3.10% — 5.80% / 11.00% / 5.20% Admicom Oyj 40.90 / 27.40 / 32.94% — 16.60 / 29.70 / 44.10% — 3.70% / 8.80% / 5.10% Brown & Brown, Inc. 106.90 / 69.46 / 35.03% — 14.60 / 24.70 / 40.90% — 5.10% / 10.20% / 5.10% Kelly Partners Group Holdings Limited 7.60 / 4.39 / 42.08% — 18.10 / 29.30 / 38.20% — 7.00% / 12.00% / 5.00% Novo Nordisk A/S 647.50 / 294.70 / 54.49% — 12.30 / 27.80 / 55.80% — 3.80% / 8.60% / 4.80% CoStar Group, Inc. 62.40 / 31.47 / 49.60% — 25.20 / 73.20 / 65.60% — 10.30% / 15.00% / 4.70% Computer Modelling Group Ltd. 4.00 / 3.78 / 4.80% — 13.60 / 25.40 / 46.50% — 0.50% / 5.00% / 4.50% Evolution AB (publ) 1162.20 / 792.60 / 31.80% — 11.00 / 15.00 / 26.70% — 1.50% / 5.70% / 4.20% Intercontinental Exchange, Inc. 258.80 / 154.38 / 40.34% — 19.50 / 21.90 / 11.00% — 7.90% / 12.00% / 4.10% Enghouse Systems Limited 31.00 / 16.63 / 46.37% — 12.30 / 25.20 / 51.20% — -2.20% / 1.80% / 4.00% LVMH Moët Hennessy - Louis Vuitton, Société 734.00 / 445.85 / 39.26% — 19.90 / 24.90 / 20.10% — 5.70% / 9.60% / 3.90% Dino Polska S.A. 45.00 / 31.83 / 29.20% — 17.70 / 24.90 / 28.90% — 8.30% / 12.00% / 3.70% MarketAxess Holdings Inc. 293.60 / 162.62 / 44.62% — 19.50 / 39.90 / 51.10% — 7.40% / 11.00% / 3.60% Domino's Pizza, Inc. 538.40 / 341.40 / 36.59% — 19.10 / 27.50 / 30.50% — 5.80% / 9.40% / 3.60% Copart, Inc. 47.10 / 31.88 / 32.28% — 20.90 / 30.70 / 31.90% — 8.30% / 11.90% / 3.60% Alarm.com Holdings, Inc. 66.20 / 55.14 / 16.68% — 15.90 / 33.30 / 52.30% — 3.50% / 6.90% / 3.40% BlackRock, Inc. 2135.40 / 1158.37 / 45.75% — 19.70 / 20.70 / 4.80% — 9.00% / 12.30% / 3.30% FactSet Research Systems Inc. 523.40 / 276.87 / 47.10% — 11.50 / 27.30 / 57.90% — 3.80% / 6.90% / 3.10% Sanlorenzo S.p.A. 44.50 / 38.90 / 12.49% — 10.90 / 14.20 / 23.20% — 2.90% / 6.00% / 3.10% EPAM Systems, Inc. 130.60 / 99.57 / 23.73% — 8.80 / 30.80 / 71.40% — 4.00% / 7.00% / 3.00% Tatton Asset Management plc 14.80 / 6.94 / 53.26% — 16.40 / 22.50 / 27.10% — 7.60% / 10.00% / 2.40% Paychex, Inc. 257.00 / 119.34 / 53.57% — 15.90 / 27.30 / 41.80% — 7.00% / 8.80% / 1.80% Dunelm Group plc 9.60 / 8.72 / 9.62% — 14.00 / 15.80 / 11.40% — 0.10% / 1.90% / 1.80% YouGov plc 3.00 / 2.63 / 11.65% — 5.70 / 10.00 / 43.00% — -0.50% / 1.00% / 1.50% Bahnhof AB (publ) 83.40 / 59.70 / 28.44% — 20.60 / 24.20 / 14.90% — 8.60% / 10.00% / 1.40% Mastercard Incorporated 1198.00 / 565.05 / 52.83% — 26.80 / 32.60 / 17.80% — 13.70% / 15.00% / 1.30% Pool Corporation 242.70 / 188.87 / 22.17% — 21.20 / 27.30 / 22.30% — 6.80% / 8.10% / 1.30% 3i Group plc 54.40 / 27.94 / 48.68% — 25.66 / 30.20 / 14.90% — 9.80% / 11.00% / 1.20% S&P Global Inc. 611.10 / 414.27 / 32.21% — 22.30 / 29.50 / 24.40% — 10.40% / 11.50% / 1.10% Chemed Corporation 1042.90 / 524.39 / 49.72% — 15.60 / 24.20 / 35.50% — 10.80% / 11.70% / 0.90% ATOSS Software SE 209.70 / 89.80 / 57.17% — 24.90 / 54.40 / 54.20% — 12.40% / 13.20% / 0.80% Reply S.p.A. 189.40 / 118.10 / 37.63% — 12.90 / 24.20 / 46.70% — 6.60% / 7.20% / 0.60% Kainos Group plc 28.50 / 9.74 / 65.80% — 17.10 / 28.70 / 40.40% — 11.5% / 11.9% / 0.4% LEM Holding SA 843.80 / 562.00 / 33.40% — 18.50 / 38.30 / 51.70% — 10.80% / 11.00% / 0.20%]
Our Portfolio
Here's what the valuation for our Portfolio looks like:
[Table image — Our Portfolio valuation sheet with the per-holding Advice column. Columns: Company / Advice / [Earnings Growth Model:] EPS Growth, Dividend Yield, FWD PE, Fair exit PE, Expected Return, Fair value, Stock price, Over/Undervaluation / [Forward PE:] Current Forward PE, Average Forward PE past 5 years, Over/Undervaluation / [Reverse DCF:] Required growth, Expected growth, Difference Medpace Holdings, Inc. — BUY — 12.0% / 0.0% / 29.7 / 25.0 / 10.4% / 615.6 / 585.0 / 5.0% — 29.7 / 29.4 / -1.0% — 13.3% / 12.0% / -1.3% Evolution AB (publ) — BUY — 5.7% / 5.0% / 11 / 15.0 / 14.3% / 1162.2 / 792.6 / 31.8% — 11 / 15.0 / 26.7% — 1.5% / 5.7% / 4.2% Kelly Partners Group Holdings Limited — STRONG BUY — 12.0% / 0.0% / 18.1 / 25.0 / 15.8% / 7.6 / 4.4 / 42.1% — 18.1 / 29.3 / 38.2% — 7.0% / 12.0% / 5.0% Brown & Brown, Inc. — STRONG BUY — 10.2% / 0.9% / 14.6 / 20.0 / 14.8% / 106.9 / 69.5 / 35.0% — 14.6 / 24.7 / 40.9% — 5.1% / 10.2% / 5.1% LVMH Moët Hennessy - Louis Vuitton, Société Européenne — HOLD — 9.6% / 2.8% / 19.9 / 24.9 / 14.9% / 734.0 / 445.9 / 39.3% — 19.9 / 24.9 / 20.1% — 5.7% / 9.6% / 3.9% Games Workshop Group PLC — HOLD — 7.0% / 2.5% / 33.1 / 23.0 / 6.4% / 123.1 / 186.0 / -51.1% — 33.1 / 23.0 / -43.9% — 16.4% / 7.0% / -9.4% Dino Polska S.A. — BUY — 12.0% / 0.0% / 17.7 / 20.0 / 13.3% / 45.0 / 31.8 / 29.2% — 17.7 / 24.9 / 28.9% — 8.3% / 12.0% / 3.7% Kinsale Capital Group, Inc. — STRONG BUY — 11.0% / 0.3% / 17.2 / 20.0 / 12.9% / 499.0 / 373.4 / 25.2% — 17.2 / 28.6 / 39.9% — 0.7% / 11.0% / 10.3% Interparfums, Inc. — BUY — 10.0% / 2.8% / 18.6 / 20.0 / 13.6% / 169.4 / 113.4 / 33.0% — 18.6 / 26.3 / 29.3% — 3.3% / 10.0% / 6.7% Ameriprise Financial, Inc. — BUY — 9.8% / 1.2% / 11 / 11.7 / 11.6% / 668.4 / 565.5 / 15.4% — 11 / 11.7 / 6.0% — 4.0% / 9.8% / 5.8% Visa Inc. — BUY — 13.5% / 0.7% / 23.4 / 25.0 / 14.9% / 666.4 / 361.8 / 45.7% — 23.4 / 28.3 / 17.3% — 14.1% / 13.5% / -0.6% Topicus.com Inc. — STRONG BUY — 15.0% / 0.0% / 25.6 / 25.0 / 14.8% / 197.6 / 101.2 / 48.8% — 25.6 / 49.2 / 48.0% — 9.3% / 15.0% / 5.7% HgCapital Trust — BUY — 12.0% / 1.1% / 3.88 (stock price) / 5.6 (NAV per share) / 16.2% / 5.6 (NAV per share) / 3.9 / 31.0% — 3.88 (stock price) / 5.6 (NAV per share) / 31.0% — (no reverse DCF) Novo Nordisk A/S — BUY — 8.6% / 4.0% / 12.3 / 20.0 / 18.9% / 647.5 / 294.7 / 54.5% — 12.3 / 27.8 / 55.8% — 3.8% / 8.6% / 4.8% Constellation Software Inc. — STRONG BUY — 15.0% / 0.2% / 15.8 / 20.0 / 17.9% / 8133.1 / 3084.1 / 62.1% — 15.8 / 31.5 / 49.8% — 9.2% / 15.0% / 5.8% Brookfield Corporation — STRONG BUY — 12.0% / 0.6% / 46 / 68.0 / 17.4% / 119.4 / 59.8 / 49.9% — 46 / 45.0 / -2.2% — 8.3% / 12.0% / 3.7% Zoetis Inc. — BUY — 7.0% / 2.9% / 16.2 / 25.0 / 15.3% / 109.2 / 71.8 / 34.2% — 16.2 / 31.7 / 48.9% — -0.4% / 7.0% / 7.4% 3i Group plc — BUY — 11.0% / 3.0% / 25.7 / 30.0 / 15.7% / 54.4 / 27.9 / 48.7% — 25.7 / 30.2 / 14.9% — 9.8% / 11.0% / 1.2% KKR & Co. Inc. — BUY — 9.8% / 0.7% / 16.2 / 17.9 / 11.5% / 127.1 / 109.9 / 13.6% — 16.2 / 17.9 / 9.5% — 4.6% / 9.8% / 5.2% S&P Global Inc. — STRONG BUY — 11.5% / 0.9% / 22.3 / 25.0 / 13.6% / 611.1 / 414.3 / 32.2% — 22.3 / 29.5 / 24.4% — 10.4% / 11.5% / 1.1% Fairfax Financial Holdings Limited — BUY — 11.0% / 0.9% / 9.1 / 8.0 / 10.7% / 2459.8 / 2266.4 / 7.9% — 9.1 / 8.0 / -13.8% — -3.2% / 11.0% / 14.2%]
There are seven Strong Buys in our Portfolio today:
Kelly Partners Group ($KPG) Brown & Brown ($BRO) Kinsale Capital ($KNSL) Topicus ($TOI) Constellation Software ($CSU) Brookfield ($BN) S&P Global ($SPGI)
Conclusion
That's it for today.
The main thing to remember? Quality stocks look very attractive today.
Here are the main changes in the Buy-Hold-Sell List:
3 companies went from HOLD to BUY: Alphabet ($GOOGL), Hermes ($RMS), Teqnion ($TEQ)
2 companies went from BUY to HOLD: Dino Polska ($DNP), Novo Nordisk ($NVO)
1 company went from HOLD to SELL: Williams-Sonoma ($WSM)
7 Companies are a 'Strong Buy': Brown & Brown ($BRO), Kinsale Capital ($KNSL), Topicus ($TOI), Kelly Partners Group ($KPG), Constellation Software ($CSU), Brookfield ($BN), S&P Global ($SPGI)
As a reminder, you can find the entire Buy-Hold-Sell List here: Buy-Hold-Sell List
Everything In Life Compounds Team Compounding Quality
Book Order your copy of The Art of Quality Investing here
Used sources Interactive Brokers: Portfolio data and executing all transactions Fiscal.ai: Financial data
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