Fuel and chemicals group Sasol, the largest single-point emitter of carbon dioxide emissions in the world as its detractors like to highlight, has been the worst-performing top 40 stock this year, down 45% at the time of writing. Trading on a trailing earnings multiple of less than three, it’s been a classic case of cheap getting cheaper.

Of course, earnings multiples don’t always tell the full story. In Sasol’s case, the obligation to make operations environmentally compliant resulted in capex that’s almost double the depreciation charge...

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