camden55, let me make sure I elaborate the conclusion correctly. You expect COF to maintain EV of $150M. From today'a market cap around $75M, you roughly expect shares to double. At a market cap of $150M, with no debt, the $120M/8 = $15M of FCF would give a 10% yield.
How long do you expect it to take to pay down all the debt?
Where does the peer group trade on FCF as a percentage of enterprise value?
investment treatise on cof, page-4
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