A company must clear a very high hurdle to earn a place in my portfolio, particularly given the level of concentration I run (typically fewer than ten positions).This company has nearly everything I look for in an investment: a defensible market position, recurring and predictable revenue, exceptionally low customer churn, strong cash conversion, a capital-light business model, aligned management, and several credible avenues for continued growth.Yet following a sharp decline in its share price, the business now trades at a single-digit multiple of normalized free cash flow. A valuation that appears to assume little or no future growth.The precise cause of the sell-off is unclear. One possible explanation is concern about disruption from AI. In the full write-up, I explain why I believe those fears are misplaced and why the market may be overlooking both the durability of the company’s competitive position and the quality of its underlying economics.Below, I explain what the company does, why its advantage may be harder to replicate than it first appears, where future growth could come from, and why I believe the current valuation offers an unusually attractive risk-reward.AI disclaimer: This article was drafted with the assistance of AI. However, the underlying research, analysis, and investment conclusions are my own and reflect a substantial amount of human effort. I also spent considerable time reviewing, refining, and fact-checking the final write-up.I believe AI has helped me communicate the thesis more clearly and produce a better article than I could have written without it.