I last wrote on Gafisa (NYSE:GFA) in July 2012 when the company was trading at around $2.47 per share; since then it has risen by 76% in value on the back of stronger cash flow generation and growing revenue. The improved operational cash flow and revenue has resulted from the company's turnaround strategy that it began implementing in 2012 and this has seen a significant improvement in the company's overall performance. The improved financial performance appears to indicate that many of the deeper issues that were affecting the company are being dealt with and should lead to ongoing improved financial performance.
However, the question remains whether the company is currently fairly valued by the market and whether investors...
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