{
  "docId": "019dd923-622b-71dc-a6db-684f41522056",
  "docSlug": "fa1808c5359c",
  "documentTitle": "Ferguson plc (FERG)",
  "authorId": "06_Trian_Partners",
  "authorName": "Brian Baldwin",
  "documentKindSlug": "conference-presentation",
  "documentKindLabel": "Conference presentation",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-11-14 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 7,
  "pageCount": 23,
  "prevPage": 6,
  "nextPage": 8,
  "slideType": "valuation_table",
  "function": "show_valuation_bridge",
  "density": "overcrowded",
  "nDataPoints": 5,
  "notes": "The slide uses a bar chart to visually demonstrate that Ferguson is trading at a lower multiple than its peers, specifically highlighting the higher multiples of 'Specialty RMI Distributors'.",
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  "metadataConfidence": 1,
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  "slideHref": "/slides/019dd923-622b-71dc-a6db-684f41522056/7",
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  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-684f41522056#slide-7",
  "components": [
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      "kind": "callout",
      "text": "... We believe Ferguson’s blended branch business should be valued in-line with specialty RMI distributors",
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      "text": "We believe Ferguson's blended branch business should be valued in-line with specialty RMI distributors",
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      "kind": "chart",
      "text": "Bar chart showing EV/EBITDA multiples for UK Distributors, Ferguson, Broadline MRO, Home Improvement Retail, and Specialty RMI Distributors.",
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      "kind": "metric",
      "text": "EV / EBITDA: 10.4x",
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      "kind": "source-note",
      "text": "Source: FactSet, company filings. Figures represent averages. Valuation metrics calculated off of Wall Street research 2019 calendar year estimates. (1) Deducts Construction & Industrial segment at 8x EBITDA and a pro-rata share of net debt. (2) Minority interest capitalized at 26x net income (Watsco's current P/E multiple) and added to enterprise value.",
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      },
      "kind": "title",
      "text": "...That is Misunderstood and Significantly Undervalued",
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      "kind": "title",
      "text": "CY 2020 EV / EBITDA",
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      "evidence": "Comparison of EV/EBITDA multiples across peer groups to justify a target valuation.",
      "confidence": 0.9
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      "arcName": "Problem-Agitate-Solution",
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      "beatName": "Problem (Identify pain)",
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      "evidence": "The presentation identifies Ferguson's undervaluation as the problem.",
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      "confidence": 0.8,
      "parentBeatName": "Complication",
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      "evidence": "The presentation implies that there are significant benefits for investors if they act on the opportunity to re-evaluate Ferguson's stock value.",
      "position": 0,
      "objective": "Highlight the cost of inaction for investors if Ferguson's stock continues to be undervalued.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
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      "evidence": "The presentation uses a golden circle approach to explain the why, how, and what of Ferguson's business and investment potential.",
      "position": 1,
      "objective": "Explain why Ferguson's business model and performance make it an attractive investment opportunity.",
      "structure": "The Why (Belief) -> The How (Process) -> The What (Result)",
      "confidence": 0.6,
      "description": "Invert the typical pitch by starting with why you exist, rather than what you do"
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  "locked": true
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