To recap, Avantor is the global provider of mission-critical products and services to customers in the biopharma, healthcare, education and government, and advanced technologies and applied materials industries. More importantly, the company has a presence in the entire value chain of its business, as it is involved every step of the way when supplying products and services to its customers, ranging from scientific discovery to commercial delivery.
Avantor: -15.2%
One of the most important metrics to gauge the quality of a business is its ability to generate cash flow and Avantor is one stock that has consistently generated cash flow. Although the stock lost 15.2% and severely underperformed the benchmarks Nasdaq and S&P 500 which returned 20.6% and 10.5% respectively, we think that the stock is trading significantly below its intrinsic value. At its current trading price of US$19.95 ($26.81), we believe its intrinsic value is around 35% above this price based on our updated in-house valuation of the company.
