recently broke its resistence of its tedious boring trading...

recently broke its resistence of its tedious boring trading range!

PE isnt too high relative to other beer n spirits companies

Beer biz is EXCELLENT; Only hampered by wine

Still has a good return on equity, or more importantly has a good return on assets or return on capital employed DESPITE poor wine performance. So overall its a solid business

They have debt, BUT the returns on that debt, and the returns on the equity are good even tho the wine assets are not that great and had to be written off!

thats a true testament to the underlying BEER BUSINESS!

Overall return on all ASSETS is way above avg even with the poor returns on the wine assets

RETURN ON EQUITY is a whopping 19.4%

RETURN ON CAPITAL (overall return on equity and debt combined) is a great 14%

Buffet likes a Return on EqUity of 12-15% and Return on Assets of 8% and over is good. Well FGLs return on capital is 14%!

Again this statistic is depsite poor wine assets performance

***Furthermore look at free cash flowa - - - i.e the company RETAINS ALOT (LOTS AND LOTS) of free CASH!

Free cash-flow = operating cash flow minus CAPEX minus DIVIDENDS. If theres anythng left over its free CASH. Well this coy has PLENTY OF IT for divvys or buybacks or cap returns of to pay down debts.

The PE can be as high as standard 17-18 for these types of companys!

Give it a PE 18 on historic earnings of 38cps and you get $6.85 valuation!