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Intrinsic values ‘rising amidst poor market conditions’

The intrinsic values of companies is continuing to rise despite “punishing” market conditions, Spanish boutique fund manager Azvalor has claimed.


The firm claims that there is an ever-widening gap between the intrinsic and market value of companies.

One example cited is Japanese firm Hyundai. Over the course of five years the stock has been falling in value until March this year when it rose by nearly 160% providing the total return of a five-year investment in just three months, a spokesperson for Azvalor said.


While the wider market’s is focusing on growth stocks, some companies, which were out of favour with generalist investors, are benefiting from years of business adjustments.


“The coronavirus pandemic has caused a drastic drop in stock prices in many quality companies and some could represent interesting investment opportunities,” said chief executive Álvaro Guzmán de Lázaro, adding that the number of potential companies “on the bench” is now at its largest in five years.


The firm also pointed out that some companies’ intrinsic values had fallen.


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