This stock selling at EV/EBITDA 2.82x, FCF Yield 19% and 31% of book value.

This stock has an EV/EBITDA of 2.82x, Free cash flow yield 19% and is priced at just 31% of its book value, yet share price hasn't moved. Why is this the case, even though the data is publicly available?

Here is the reason why…

Many investors might say it is a "value traps," this is human psychology. Charlie Munger said it well: "The world is not driven by greed, but by envy." Investors often feel frustrated seeing others profit from stocks like NVDA, which have skyrocketed in 10X in 24 months, while their own investments stagnate. This feeling of missing out leads many to label these stagnant stocks as "value traps."

But what exactly is a "value trap"? It's a stock that seems cheap because it's significantly below its intrinsic value, but there's a catch: the company does nothing to increase its value. It doesn’t grow, return capital to shareholders, or enhance profits. You might buy into it cheaply, but no growth that it hardly makes a difference in the long run.

How can you tell the difference between a value trap and a truly undervalued stock worth buying? Look for stocks where the value is increasing. If a stock is purchased a ringgit for 50 cents below its worth but it still compounds at a rate of 10% annually, it'll be worth RM 1.10 after one year, RM 1.21 after two, and so on. it will eventually pay off through mean reversion—this is when the stock price adjusts to reflect the true value of the company.

Now, this stock seems like a better deal than most: it's like buying a ringgit for 31 cents, where the "Ringgit" continues to grow through increased revenues, profits, and dividends, and yet the trend in this sector is now favorable.

Price to tangible book: 0.31

EV/EBITDA: 2.82x

EV/FCF: 5.13x

Dividend Yield: 3.5%

Latest Quarter ROIC: 7.61%/ TTM 4.07% (Continuing to improve)

Latest Quarter ROE: 8.16%/ TTM 4.7% (Continuing to improve)

Free cash flow yield: 19%