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.