JW-A's recent selloff may provide a solid value oppurtunity
I think this recent 27% selloff in the past few weeks is overdone.
JW-A is a solid publisher w/ a history of wonderful brands including (For Dummies, Frommers (recently sold to google I think), Webster's Dictionary, Cliffnotes, Betty Crocker cookbooks, and a ton of academic and professional journals, textbooks, and *online* training materials.
Over the past decade, Wiley has has steady growth, averaged ROE between 30-40%, averaged ROC between 17-24%. For what it's worth, Morningstar assigns JW-A a wide moat, which according to them, is a rarity among publishing companies.
Here's a snapshot of the companies past decade:
The company is now selling at 7.3x free cash flow, and has 2.5% dividend yield on top of that.
That's just too cheap!
What do you guys think?