UK Markets closed

VEF (VEFL) initiation: Digitalisation dynamo

·2-min read

Edison Investment Research Limited
07-Nov-2020 / 08:00 GMT/BST

 

London, UK, 7 November 2020

VEF (VEFL) initiation: Digitalisation dynamo

VEF is a unique, fairly young company focused on fintech in emerging markets where financial services are underpenetrated and populations are jumping straight to digitalisation, with COVID-19 accelerating this trend. It is particularly focused on Brazil, which offers enormous growth potential with over 200 million people, high online penetration, scalability, incumbents with concentrated market shares and high pricing, and regulatory support for fintechs. VEF trades at a discount to NAV (13%) following a 20% NAV increase in Q320 and could offer a very attractive entry point for growth-oriented investors who cannot easily get exposure to this asset class. Its track record is limited, but realisations so far have made a 65% IRR, and VEF is backed by highly regarded shareholders.

VEF is trading at a 13% NAV discount. Underlying assets are valued under a mark to model approach (normally on a revenue multiple) or on a recent transaction basis. The portfolio is on an FY19 revenue multiple of 17x, but revenue quadrupled in the two years to FY19 and we believe strong momentum should continue.  

Click here to view the full report.

 

Subscribe to Edison's content to receive reports by email.

All reports published by Edison are free-to-access and available on the website.

 

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Pedro Fonseca, +44 (0)20 3077 5700

investmenttrusts@edisongroup.com

 

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-group-

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       https://www.youtube.com/user/EdisonITV/videos


Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

End of Announcement - EQS News Service

show this
show this