The rock-bottom price-to-cash flow multiple, suggests the market expects RE/Max Holdings, Inc. $RMAX to remain perpetually unprofitable. RMAX has never traded this low despite doubling revenue since the company first IPO’d in October 2013 at $22 and opening in the market at $26.25. This is a stark contrast to reality – RMAX has been consistently cash flow positive since its IPO in 2013. The recent stock price plunge can be largely attributed to the company's pause on its capital allocation program, where shareholders had previously seen RMAX return excess cash to shareholders through dividends and buybacks. Additionally, the industry is under some change which we believe the affects of the change are overblown post-settlement of the industry wide conspiracy case. Importantly, …

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