Singapore Exchange Ltd

“SGX operates a structurally protected Asian derivatives and data infrastructure franchise with near-pristine financials — 35-42% ROE, sub-1x leverage, ~90% FCF conversion — but trades at 35x trailing earnings with only 3-5% organic growth, leaving base-case intrinsic value roughly equal to the current price and negligible margin of safety; the business deserves to be owned, but only at a materially lower price (~SGD 16-17) where the risk/reward asymmetry becomes favorable.”