3i Group Share Price (III)

Very sensible and substantially undervalued.

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I'll never understand the irrationality of share prices. I'm invested in 3i PLC and B&M European (I'd argue that with anyone that with 64% of Action shares, that adds up to 72% of 3i's NAV , that 3i is effectively a supermarket with a bit of private equity bolted on), the final results for B&M dropped today with a large drop in profits and a positive spin and the price rockets up, admittedly from a fairly low point, but much higher than anything in the last few months. Last Month people did not read https://www.3i.com/investor-relations/annual-report-2026/ which I thought was pretty amazing given the headwinds, they probably read just the negative headlines and the SP tanks. They are pricing the SP as if Action was about to collapse and B&M as being better than an equal.

Have been doing a bit of modelling with help of course:

3i @ 20% CAGR vs B&M's 11%, (don't trust Ai to get it right without a lot of pushback and knowing your numbers, so much was wrong)

PEG ratio 0.4 vs 2.32 for B&M

PEGY 0.21 vs 0.64 for B&M. (with past dividends being flattered in this)

What are other people seeing that I'm not? No one is listening to the 3i CEO talks with Analysts either, Energy fully hedged appeared on the slide deck and in a question. DYOR, but to me it's one to accumulate with a huge margin of safety, but its already a pretty large % of my portfolio and I'm aware of the "Markets can remain irrational longer than you can remain solvent" quote.

It depends on what timeline the ceo if looking at. we could see another drop this coming week with a bit more of the folks with lots of profit getting out. might be best to see what shake we see with a few more trading sessions before coming too gunhoo on this

The CEO has just dropped another £1.1 on 50,000 more shares, that's over £10m in a couple of months. I know we aren't supposed to read too much into these things, but he certainly thinks 3i is going to make money.

It does make it easier to sit on this until it gets up to at least Bersteins £38 valuation.

I’ve lost count of the number of retailers expanding into America only to withdraw a few months later. A different audience, margin, variety of offerings and presentation needed. The ONLY way to launch in America is by acquisition if a lasting future is expected