TRADE IDEA: SASOL
Sasol is a quality company with an exceptional track record, but remains influenced by a number of external factors. These have a significant impact on profitability, but is not under management’s control, such as oil price and exchange rate movements. The company has, however, illustrated its ability to generate sustainable cash flows at oil prices of $40/bbl. Trading on a forward P/E ratio of 11 times and 1.2 times its NAV, we feel the share is fairly valued.
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