Edison issues report on HgT (HGT)

Summary by AI BETAClose X

HgT reported a 5.4% decline in Net Asset Value (NAV) total return for Q126, primarily due to a 9% contraction in valuation multiples, despite a 5% contribution from strong portfolio earnings growth. Over the last twelve months, revenue and EBITDA increased by 16% and 19% respectively, with organic growth at 10% and 17%. The trust's five- and ten-year NAV total returns stand at 10.9% and 16.1% per annum, respectively, with an average EBITDA margin of 34% across its portfolio. HgT shares are currently trading at a significant discount to NAV of approximately 30%, a widening from the 2021-25 average of 9%, implying a look-through EV to LTM EBITDA ratio of around 17x, which is below the current market multiple for US SaaS businesses.

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