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Five Point Holdings, LLC (NYSE:FPH) is a deep value play poised for a re-rating as the market misjudges the long-term monetization potential of its California land bank and underestimates the gains from its
Joint Ventures, Strong Fundamentals, And A 4.4x P/E: Why Five Point Is A California Deep Value Play
Summary
- Five Point Holdings, LLC, a California-focused master-planned community developer, trades at a P/E of 4.39, significantly below the peer average of 40.66.
- The company leverages joint ventures for capital-efficient growth, allowing for substantial land-sale revenue with modest upfront capital.
- Despite inflationary pressures and rising mortgage rates, Five Point has shown strong revenue and profitability growth, with a net income of $89.11 million in the TTM.
- With a compelling risk/reward profile, Five Point is undervalued compared to peers, making it a highly attractive investment opportunity.
An economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously.
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