Dwf Group Share Price (DWF)

Half year results from UK peer Keystone today. Interesting comparison to DWF. DWF is
5x the sales
7x EBITDA
50% better margins
Similar sales growth >10%
4x the dividend yield....

and only 1.5x the enterprise value. DWF is still below its pre covid share price while Keystone is 30% higher. Might see a trading update from DWF for Q12022 any day now... Opportunity....

Solid revenue growth, PBT ahead of expectations, improved working capital efficiency and better gross margins across all businesses. They are still yet to see the impact of the operational changes and discontinued loss making businesses from last year and they have made a couple of small acquisitions which will all further support growth and improved margins this year.

The fact that this is still well below pre pandemic prices is a huge valuation anomaly. The business has not only recovered but has improved substantially since then. EV/EBITDA is only around 5x which flows through to chunky cash flows and the dividend yield looks to be 6-7% over the next 2 years and growing.

With the rise today this has entered into my top 5 holdings and I intend to buy on any more dips. I'm a huge fan of what Sir Nigel is doing with the business

How could they possibly be considering an IPO at 750m?!

The law firm that represented Princess Diana in her divorce is considering an initial public offering. Mishcon de Reya on Wednesday said it may list on the London Stock Exchange later this year, with a valuation of as much as 750 million pounds, according https://www.ft.com/content/73023d4a-5d6b-4148-bbae-401615e6fb95 to the Financial Times.

That looks punchy. Mishcon expects revenue of around 188 million pounds for the year to April 9. Its UK peers, such as DWF , are valued on average at 2 times sales including debt, according to Refinitiv data, implying a valuation of around half the mooted amount. Its partners want to more than double revenue to 400 million pounds in five years, an ambitious move given uneven revenue growth in recent years.

True, Mishcon has good pedigree, and no debt. But listed law firms can be tricky investments: aggressive expansion can backfire, and partners may struggle to get lucrative business under the public glare. Mishcon will use the money to shift its business to non-legal areas, such as consulting, which may have higher growth, but are also less tested. Caveat emptor. (By Dasha Afanasieva)

don't understand how this is valued at more than gateley, what am i missing?

Very good results