The ASX dividend share Bailador Technology Investments Ltd (ASX: BTI) could be one of the cheapest stocks available for Aussies looking for passive income.
It's one thing for a company to trade at a cheap price/earnings (P/E) ratio. It's another for it to trade significantly below its asset base. The latter is a clearer indication of undervaluation, in my opinion.
Bailador is a business I've been highlighting recently because of the great value on offer. A recent update affirmed that to me.
For readers that don't know Bailador – it's an investment company that focuses on technology businesses, particularly platform and other software offerings. The business is currently invested in areas like hotel management and room distribution software, telehealth, financial advice and investment management software, tours and activities software and plenty of others.
While the ideas are drawn from various sectors, they typically have a number of things in common – run by the founders, have a proven business model with attractive unit economics, international revenue generation, have a huge market opportunity and have the ability to generate repeat revenue.
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Why the ASX dividend share looks so cheap
Every month, the business tells the market what its portfolio of investments is worth, which is called the net tangible assets (NTA).
At the end of May 2025, the business had pre-tax NTA of $1.65 per share and post-tax NTA of $1.54 per share. In overall dollar terms, its portfolio was worth $245.5 million in pre-tax terms.
So, the current Bailador share price is trading at a 23% discount to the May post-tax NTA and a 28% discount to the pre-tax NTA.
However, since then, the business has announced a 49% uplift for its DASH valuation, a 24% valuation rise for Updoc, a 20.8% jump in the valuation of Access Telehealth, a 50% increase for Hapana and a 63% decline for Nosto.
Adding those valuation changes to the May NTA numbers leads to the ASX dividend share having a pre-tax NTA of $1.81 and a post-tax NTA of $1.65. That means it's trading at a 44% discount to the pre-tax NTA and a 28% discount to the post-tax.
So, Bailador is trading at a very large discount to the value of its fast-growing portfolio of businesses.
As a bonus, I think further RBA/Federal Reserve rate cuts could help accelerate the rise of the value of the portfolio.
Great dividend yield
The ASX dividend share aims to pay an annual 4% dividend yield based on its pre-tax NTA. With how the business is trading at such a large discount to its pre-tax NTA, the dividend yield could be very large.
At the current Bailador share price, it could pay an annual fully franked dividend yield of 6% and a grossed-up dividend yield of 8.7%, including franking credits.
Being able to invest in compelling businesses, at a cheap price and a good dividend yield, is appealing to me. I think it's one of the best ASX dividend shares to buy right at this bargain price.
