Here I am going to attempt to value Casper Sleep Inc., the sleeping mattresses producing that recently staged an IPO on the New York Stock Exchange.
Basically, Casper sells online and delivers also through retail locations sleeping mattresses mainly, but also pillows and other sleeping accessories.
What is the intrinsic worth of Casper Sleep Inc. In my opinion, the company is worth around 700 million USD in the next 2-3 years, and that is in case Casper Sleep becomes mildly profitable. For the whole of 2018 Casper Sleep realized 357.9 million USD of revenue, up more than 50% from full year 2017. For 2019 it looks like revenue growth will moderate to more like 17% year on year from 2018.
Casper Sleep is loss making with circa 30% yearly negative profit margin. Casper Sleep has to find a path to profitability, in order to be deemed a really valuable company and to increase its market capitalization. As far as I am concerned, for now Casper Sleep's intrinsic value is about 700 million USD and that is based on the assumption that Casper Sleep gradually raises its net profit margin driven by strongly growing sales.
Disclaimer:
The blogposts and comments on this blog and posts on social
networks(Twitter, LinkedIn etc.) are not investment recommendation,
are provided solely for informational purposes, and do not constitute an
offer or solicitation to buy or sell any securities. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is as is.
Petar
Vladimirov Posledovich is not liable for any investment losses incurred
by reading and interpreting blogposts on this blog and posts on social
networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
No comments:
Post a Comment