Investing

Thomson Reuters as an inflation hedge?

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  • Aug 19th, 2021 4:05 pm
[OP]
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Jun 10, 2015
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Canada

Thomson Reuters as an inflation hedge?

It has a low PE ratio (around 8) and it primarily derives its profit from its legal and accounting databases business. You'd think this will still be a strong business if there is high inflation, worse COVID outbreak , or even a double dip recession.

Lawyers are still bringing in lots of business and it is easy for them to work remotely.
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Jan 23, 2011
1387 posts
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redflagdealsnewb wrote: It has a low PE ratio (around 8) and it primarily derives its profit from its legal and accounting databases business. You'd think this will still be a strong business if there is high inflation, worse COVID outbreak , or even a double dip recession.

Lawyers are still bringing in lots of business and it is easy for them to work remotely.
Note that the low P/E is because it recognized a gain on sale of Refinitiv in the March 2021 quarter. They sold this to the London Stock Exchange in exchange for some LSE shares, which is interesting. Otherwise, I agree this company is an under the radar gem, up 40% over the past year. One small caution is that it is majority owned by a family, so there could be corporate governance issues, but so far I don't see this as a problem.

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