Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts 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 blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Thursday, May 6, 2021

The Honest Company Valuation



Dear Reader,

The Honest Company, the American consumer goods company founded by actress Jessica Alba, staged an IPO on Nasdaq this Tuesday with the price of The Honest Company's stock leaping 43.75% on its first day of trading with The Honest Company currently valued at 2.08 billion USD.

Is The Honest Company overvalued, fairly valued or undervalued> I would say that currently The Honest Company is undervalued based on its SEC financial results IPO filing. I estimate the current 2-3 year horizon fair value for The Honest Company is 2.5 billion USD

The Honest Company grew its revenue by 28% year on year in the calendar 2020 compared the calendar 2019.

In the long run, however, The Honest Company could prove grossly undervalued. The market for beauty skincare products, diapers and wipes is huge compared to the revenue that The Honest Company is currently making. And The Honest Company is on the verge of becoming profitable by generating a net loss of only 14.5 mln. USD in 2020.

So in the long run, 5 to 7 years The Honest Company could end up being worth around 9 billion USD if its strategy is executed well. The market for women beauty care products is too concentrated, underinvested and rife for disruption by beauty technology companies like The Honest Company.


Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook 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. The opinions expressed on the blog are Petar Posledovich's. 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

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