Option Millionaires

[uranium-pinto-beans]

CVNA


Carvana: Confidence is Low on the Path Forward, Downgrade to Hold - Needham (4.96 0.00)
Needham's Chrris Pierce states, "To derive a rough approximation of CVNA's value, we looked at KMX's enterprise value of ~$13B, applied a 50% haircut given KMX transacts on roughly 2x units vs CVNA, then applied another 50% haircut given KMX transacts on these units profitably, getting to a ~$3B EV for CVNA. If we assume the equity portion of CVNA's EV makes up 10% of the new entity, that suggests $300M, or roughly $1.50/share."