Buy Domain, get Fairfax free

Alex Leyland, Portfolio Manager at Leyland Asset Management, thinks the market has misunderstood Fairfax Media. One of Fairfax’s major assets is the Domain website, an online real estate company which competes with RealEstate.com.au. Domain saw more than 60% growth in revenues in the recent reporting period, and it now accounts for around 50% of Fairfax’s earnings before interest and tax. Based on their valuation Domain itself is worth around 85-90 cents per share, and while the print business is in decline, it continues to make money. “It’s basically an online real estate company, everything else you get for free.” Watch the video to hear his other tip for a misunderstood company.