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Re: TraderUsa post# 620668

Monday, 12/18/2023 2:39:48 PM

Monday, December 18, 2023 2:39:48 PM

Post# of 642376
Comparasion Carvana (CVNA) vs Vroom (VRM) (in)


Carvana (CVNA)

Market Cap: $10,89B
Revenues: $11,18B
EPS: -5.87

Quote: $54.54

Vroom (VRM)

Market Cap: $139,77MM
Revenues: $866,62MM
EPS: -1.43

Quote: $0.82

To demonstrate the tremendous undervaluation of VRM, we will match by capitalization and sales (taking into account that VRM has better EPS than CVNA):

10,89 (Market Cap Carvana) / 11,18 (Revenues Carvana) = 0,974

866,62 (Revenues Vroom) x 0,974 = 844,08 (This would be the equivalent capitalization to that of CVNA that VRM would have to have)

Now we divide the theoretical equivalent capitalization by the number of VRM shares. 844.08 / 139,77 = $6.03

To be at market parity, VRM would have to have a value per share of $6.03.

Is my humble opinion.

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