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As part of our ongoing series at The Acquirer’s Multiple, each week we spotlight a stock from our Stock Screeners that might be a deeply undervalued gem hiding in plain sight.

This week’s spotlight is: World Acceptance Corp (WRLD)

World Acceptance Corp is a consumer finance company providing small installment loans across the U.S. and Mexico. Operating in a highly regulated industry, WRLD has managed to maintain profitability while returning capital to shareholders, all while trading at what appears to be a significant discount to intrinsic value.

What is IV/P (Intrinsic Value to Price)?

IV/P tells you whether a stock offers more intrinsic value than the price you’re paying for it.

The Calculation: It blends earnings power, reinvestment efficiency, and capital return policy to estimate intrinsic value — a conservative valuation of what the business is worth.

The Interpretation:

• IV/P > 1 → Stock may be undervalued
• IV/P < 1 → Stock may be overvalued
• The further above 1, the more value you may be getting per dollar invested

IV/P for WRLD: 1.90 WRLD’s IV/P of 1.90 suggests its intrinsic value is estimated to be 90% higher than its current market price — indicating a potentially wide margin of safety for investors.

Supporting Metrics

• Market Cap: ~$947M
• Enterprise Value (EV): ~$1,488M
• Free Cash Flow Yield (TTM): ~27% WRLD continues to generate strong free cash flow relative to its market cap, enabling share repurchases while funding growth initiatives.
• Acquirer’s Multiple: 4.65 With an EV of ~$1,488M against ~$320M in operating income, WRLD trades at an attractive multiple of just 4.65 — placing it firmly in deep value territory.

Revenue & Profitability

• Revenue (TTM): ~$567M
• Operating Margin: ~27%
• Net Margin: ~15%
• Return on Equity (TTM): ~19%
• Trailing P/E: ~11.79

These figures reflect a business with high returns on capital and attractive margins despite operating in a cyclical, credit-sensitive industry.

Capital Returns

• Dividend Yield (TTM): 0% (no dividend currently)
• Buyback Yield: ~6% (management actively repurchasing shares)

While WRLD does not pay a dividend, management has historically prioritized buybacks, signaling confidence in intrinsic value.

Why Might WRLD Be Undervalued?

1. Small-Cap Neglect At just under $1B in market cap, WRLD remains below the radar of large institutions despite consistent profitability.
2. High Free Cash Flow Generation A free cash flow yield above 20% gives WRLD a wide margin of safety to navigate credit cycles.
3. Capital Return Focus Ongoing buybacks provide a consistent mechanism for shareholder value creation.
4. Deep Value Valuation An Acquirer’s Multiple of 4.65 and IV/P of 1.90 suggest the market is pricing in overly pessimistic assumptions.

Conclusion

With an IV/P of 1.90, an Acquirer’s Multiple of 4.65, high free cash flow yield, and a disciplined capital return program, World Acceptance Corp represents a potentially compelling deep value opportunity in consumer finance. For investors seeking small-cap value with strong profitability metrics, WRLD may warrant closer investigation.

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