BAH

Booz Allen Hamilton Holding Corp

TMT


Presented:08/21/2019
Price:$75.06
Cap:$10.52B
Current Price:$162.34
Cap:$20.97B

Presented

Date08/21/2019
Price$75.06
Market Cap$10.52B
Ent Value$11.15B
P/E Ratio24.9x
Book Value$5.34
Div Yield0.62%
Shares O/S140.22M
Ave Daily Vol998,751
Short Int1.61%

Current

Price$162.34
Market Cap$20.97B
Booz Allen Hamilton Holding Corp. engages in the provision of management and technology consulting services. It offers analytics, digital solutions, engineering, and cyber expertise. The company was founded by Edwin Booz in 1914 and is headquartered in McLean, VA.

Publicly traded companies mentioned herein: Booz Allen Hamilton Holding Corp (BAH)

Highlights

The presenter is short shares of Booz Allen Hamilton Holding Corp (BAH), the IT management and consulting company that primarily acts as a contractor for the US government. Market sentiment is positive due BAH’s strong business mix and performance, but the presenter believes the company has reached peak valuation (~24x earnings) on peak margins and peak growth. He also sees significant downside optionality in the form of accounting issues and potential criminal liability. With shares currently priced at ~$74, he estimates 50% potential downside without material risk to the short position. 

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Idea Discussion

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