Episode 118: How We Value a Business
Listen on: Spotify Apple Podcasts Debrief No interview this week, so we decided to go through the personal strategies we use when trying to “value” a business. It is a complicated task, and one that is unique to every stock you look at, but here are the five questions I ask: What is the free cash flow yield? What can FCF/share grow at over the next 3 – 5 years? How likely is it that my prediction of FCF/share growth is correct? What potential downside is there at this price?
Yext: A Reasonably Priced SaaS Name?
I tweeted this out on Saturday: Why I like $YEXT: – No competition – EV/Rev of 5.12 – High gross margins – Huge value proposition for customers — Brett Schafer (@CCM_Brett) October 20, 2019 It got a decent amount of engagement, so I thought I’d go deeper on each bullet point and explain why Yext is one of my favorite SaaS stocks right now. But first, since they are not a household name, let’s talk about what Yext does. A business can use Yext to make sure its information an
Fundamental Analysis of Starbucks
On this Fundamental Analysis show, we discussed Starbucks (SBUX), the $100 Billion coffee chain giant. Highlights from the show: Market cap of $103.5 billion Trailing P/E of 37, forward P/E of 27.5 Comp Store Sales up 3% YoY Net store growth up 7%, with Chinese store count growth up 17% Value of the Starbucks brand Listen to the full show: Spotify Apple Podcasts Google Podcasts #stock #Valuation #stockmarket #Starbucks #analysis #Podcast
Fundamental Analysis of Slack
On this Fundamental Analysis show, we discuss Slack Technologies (WORK), the internal business communication and collaboration tool. Highlights from the show: Price to Sales of 41.3 Revenue growing 67% YoY Margin Adjusted Price to Sales of 58 Gross Margin of 86.2% Replacing email, but can it replace messaging? Listen to the full show: Spotify Apple Podcasts Google Podcasts #slack #stock #Stocks #Valuation
Getting Real With Tesla Stock
Please note I do own a minuscule amount of Tesla put options that shouldn’t but probably will make you think I am biased against the company With delivery numbers down heavily for the 1st quarter, the bull case for Tesla is looking weaker by the day. I believe investors in the company are overestimating vehicle demand by a wide margin, which is the main reason Tesla slashed selling prices at the end of the quarter. Why do I think this? Because I used to be the biased Tesla bu