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Victory Capital Holdings: Undervalued And Poised For Growth

Aaron Stine profile picture
Aaron Stine


  • Based on its cash flows and comparison to its competitors Victory Capital Holdings is a decent value investment opportunity with a lot of growth potential.
  • Company insiders are heavily invested which demonstrates a strong conviction and shows they have skin in the game.
  • Strong fundamentals and a history of acquisitions are evidence of the scalable nature of this company and serve as an indicator of future growth prospects.
  • Victory Capital Holdings is largely owned by Crestview Partners, L.P. who have a strong history of helping companies scale and grow. This partnership has propelled Victory Capital Holdings and is evidence of its future potential.

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Note: This article was amended on 12/1/21 to reflect adjusted observations related to the company's valuation. The author sentiment has not changed.

Investment Thesis

Victory Capital Holdings (NASDAQ:VCTR) is potentially a long-term growth play. Based on the current high level

This article was written by

Aaron Stine profile picture
I have been in the finance industry since 2017 with a focus on retirement planning. I conduct my research in speculative investments for my personal accounts on a regular basis. My trading strategy generally is a 1-3 year time horizon.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in VCTR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (3)

Thank you Aaron for your analysis. It's great to see that other investors are finding this great opportunity!

In regards to the following paragraph I have a few questions;

"Discounting its current free cash flow of $322 million by 10% each year for ten years shows the company is currently worth approximately $1.978 billion. If we take $1.978 billion divided by the current number of shares outstanding, the fair value of each share is approximately $121.10 or 211% of potential value".

1) How did you arrive at the company being worth $1.978B. It's 322/10% = $3.22B.
2) The company currently trades at a market cap of around $2.39B and the share price is equal to $35.06, according to Google Finance. How did you arrive at the share price equal to $121.10, I believe that your share count is wrong.

Aaron Stine profile picture
@Karam Sulaiman Thanks for the comment! During my research, the outstanding share count was around 16 million (according to google finance). I think this happened due to a recent share class conversion where they converted all of their b-class shares to a-class shares. During my research, every system I used portrayed the same share count. I am updating my article now.
Assetmgrsc profile picture
@Aaron Stine -- I have read your article and found it interesting enough to look into the company from a broader perspective. One of the first things that I found is SA is showing that more than 39% of the outstanding shares have been sold "short." Can you please provide some explanation for this extreme short.
Thanks in advance
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