LIT (Litigation Capital Management Ltd) vs FTSE All Share Index Comparison

LIT

FTSE All Share Index

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LIT

FTSE All Share Index

Difference

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LIT

FTSE All Share Index

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FTSE All Share Index

LIT

IRFC

PFC

RECLTD

8593

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Litigation Capital Management Ltd
Glance View

Market Cap

116.9m GBX

Industry

Financial Services

Litigation Capital Management Ltd. engages in providing litigation finance for companies and individuals. The company is headquartered in Sydney, New South Wales. The company went IPO on 2018-12-19. The firm is an alternative asset manager specializing in disputes financing solutions internationally. The company operates through two business models: direct investments and funds management. LCM's investment strategies include single-case, portfolios, and acquisition of insolvency claims. Its single-case investment includes investment in a single dispute globally. Its portfolio includes funding a bundle of single disputes in which LCM's capital investment is collaterally secured against the proceeds of the entire portfolio of disputes. Its acquisition of insolvency claims includes investment in smaller disputes through the acquisition or assignment of the underlying cause of action. The firm's product includes Fully Litigation, Litigation for finance companies, Funding for financial international arbitrations, Law firm/Portfolio funding, Disbursement finance, Security for costs, and others.

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LIT Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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IN		Indian Railway Finance Corp Ltd NSE:IRFC	Select
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IN		REC Limited NSE:RECLTD	Select
JP		Shinkin Central Bank TSE:8421	Select
JP		Mitsubishi HC Capital Inc TSE:8593	Select
CA		Element Fleet Management Corp TSX:EFN	Select
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JP		Tokyo Century Corp TSE:8439	Select

IN		Indian Railway Finance Corp Ltd NSE:IRFC	Add
IN		Power Finance Corporation Ltd NSE:PFC	Add
IN		REC Limited NSE:RECLTD	Add
JP		Shinkin Central Bank TSE:8421	Add
JP		Mitsubishi HC Capital Inc TSE:8593	Add
CA		Element Fleet Management Corp TSX:EFN	Add
IN	I	Indian Renewable Energy Development Agency Ltd NSE:IREDA	Add
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LIT

vs

FTSE All Share Index

Stocks Performance
LIT vs FTSE All Share Index

Performance Gap
LIT vs FTSE All Share Index

Performance By Year
LIT vs FTSE All Share Index

Competitors Performance
Litigation Capital Management Ltd vs Peers

Litigation Capital Management Ltd
Glance View

Company

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LIT vs FTSE All Share Index

Stocks Performance LIT vs FTSE All Share Index

Performance Gap LIT vs FTSE All Share Index

Performance By Year LIT vs FTSE All Share Index

Competitors Performance Litigation Capital Management Ltd vs Peers

Litigation Capital Management Ltd Glance View

Company

Help

Tools

Stocks

LIT

vs

FTSE All Share Index

Stocks Performance
LIT vs FTSE All Share Index

Performance Gap
LIT vs FTSE All Share Index

Performance By Year
LIT vs FTSE All Share Index

Competitors Performance
Litigation Capital Management Ltd vs Peers

Litigation Capital Management Ltd
Glance View