Globant (GLOB)

Investor summaryBullish

The author finds GLOB ridiculously cheap based on EV/FCF and views it as a cigarette butt value play with AI as a potential tailwind.

Bull points

Extremely cheap valuation with an EV/FCF of 4.5.
Limited downside risk as a cigarette butt play even if AI disrupts the sector.
Strong upside and re-rating potential if AI acts as a tailwind or business remains stable.

Bear points

The too good to be true valuation suggests potential hidden risks or deteriorating fundamentals.
AI disruption could severely damage or squash the company's core business over the long term.

GLOB价值 / 回购

Post body

The numbers on this company looks ridiculously cheap.

EV/FCF = 4.5

Valued at 1.2bn USD, with FCF of 282m

Which means its probably too good to be true. Hit me with why I shouldn't buy this one?

It feels like a situation where if AI squashes it you still get your money back as it declines in next 10 years (cigarette butt). And of AI is a tailwind or it just treads water the price will strongly outperform and re-rate.

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