BrightHouse Financial

Hey everyone,

I am currently looking into BrightHouse Financial (BHF), a spin-off of Metlife. Recently, David Einhorn took a sizable position in the company. Book value is $121 per share, and the price to book is lower than the industry average, with the stock is trading at $50 per share. I believe, despite its lack of earnings, that the discount is largely explained by over-pessimism, lack of knowledge, and the institutional selling that comes with all spin-offs. What do you all think?

Also, I'm also wondering if it is wise to use a FCF model for a company like this?

Thanks!

Comments

  • Hey,

    I looked into BHF as well and I do have a feeling that it is highly discounted just based on the price/book but as soon as I opened up their 10k I had no idea what was going on with all the derivatives. If someone knows how to understand their 10k I'm sure they'd know more but I do think it is "cheap" just based off of some basic value metrics.
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