Happy Thanksgiving everyone and thanks for reading! SS&C Technologies is a vertical market software (VMS) business that provides software solutions for a host of mission-critical yet mundane front, middle, and back-end functions across the financial services and healthcare industries.
I am curious to know why you ignored the debt in the valuation. EV/FCF is around 20. I'd argue that it's slightly overvalued for something growing at 5-6%.
No doubt about the moat but would you buy the whole business for $20 billion (including debt) in exchange for recurring FCF of $1 billion growing at 5-6%?
Great post.
I am curious to know why you ignored the debt in the valuation. EV/FCF is around 20. I'd argue that it's slightly overvalued for something growing at 5-6%.
No doubt about the moat but would you buy the whole business for $20 billion (including debt) in exchange for recurring FCF of $1 billion growing at 5-6%?