The YouTuber believes Qualys is undervalued, trading at a historically low price-to-free cash flow ratio of 20, which is cheaper than during the 2020 crash. Despite a projected slowdown in revenue growth to 8-10% for 2024, the company maintains high profitability, a strong balance sheet, and is expected to deliver market-beating returns even with conservative growth estimates. The current correction of 32% from all-time highs presents an attractive entry point.
“it's actually cheaper right now on a price to free cash flow basis than it was during the stock market crash of 2020 so it seems like the market is actually quite bearish towards this company right now” — ▶ 06:00