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P Pitch Archive Stock pitches across investing competitions
← Fall 2010

CoreLogic, Inc.

CLGX pitch long Alex Latushkin

Thesis

CoreLogic is a high ROIC business services and data analytics company with leading niche market share that is poised to benefit from long-term secular trends in the mortgage and financial industry. The company has a strong competitive edge due to its market share, barriers to entry, and the increasing demand for transparency and regulatory compliance. Applying a 13x free cash flow multiple to a normalized levered FCF of ~$250MM, I arrive at a target price of $27/share.

Did it work?

failed confidence: high

The pitch was a long with a $27/share target premised on durable high-ROIC economics and a 13x multiple on ~$250MM of normalized levered FCF. Over the ~16 years since the pitch, the stock declined 75.6%, the opposite direction of the thesis and far short of the target, indicating the assumed competitive moat, secular tailwinds, and valuation multiple never materialized as expected. With such a long horizon elapsed and a decisively negative return, the thesis is clearly broken.