One of our favourite mental models: when the market de-rates an entire industry, it throws the baby out with the bathwater.
The highest-quality names often fall more than the industry, then re-rate first and come out stronger.
We think Aptus Value Housing is one. A π§΅. Please share your thoughts, and happy to discuss this!
This is just for academic purposes, not a recommendation. Please do your own research and diligence.
What we watch: the small-business book, rivals moving into its ticket size, Andhra Pradesh at 43% of AUM, and growth fading.
Each one runs through the multiple. On its own, none costs more than ~2 points of IRR at a 2.75x exit.