3i Group: Still Not On Board With Action Valuation

3i Group remains unappealing due to the rising cost of capital and lack of catalysts, while asserted multiples don't shrink.

TGOPF trades at a 10% discount to asserted NAV, but NAV relies on high, arguably unrealistic, multiple assumptions for the main business, Action.

Public comps trade at a fraction of the multiple and have similar growth prospects.

The NAV discount isn't that great to begin with, and we just aren't able to get behind its substance.

Cost of capital and reinflation concerns are bad for PE.

3i Group ( TGOPF ) continues to be uninteresting to us, particularly as the cost of capital situation takes a turn for the worse.

With the reignition of the conflict with Iran and the pressure on oil