RE: Simply Wall St Valuation9 Dec 2023 17:40
I'm a happy investor in BUR but I don't think you can easily put even a vague "fair value" on this type of business. That's probably putting a lot of investors off (as it looks too speculative) but I'm comfortable with it. I remember Bogart saying a couple of years ago that if you want steady cash flows and divis, then you should look elsewhere, it's not what BUR can do. Basically it's a lumpy cash flow business. The obvious way to fix it so it looks like "value" is to hold any cash from wins and drip feed it out to investors via divis, but I doubt that's their business model.