FMET - Bumble: Risk/Reward Skewed To Downside
- Bumble is a leading social media company with a focus on online dating and social networking. The company operates Badoo, Bumble, and Fruitz.
- With an MAU of more than 40 million, Bumble is arguably the biggest competitor to Tinder.
- From 2018 to 2021, Bumble has grown at a 3-year CAGR of >25%, with revenues increasing from $360 million in 2018 to $765 million in 2021.
- Going forward, analyst consensus sees the company’s 5-year growth at 16.7% CAGR.
- I value Bumble based on a residual earnings framework and calculate a fair share price of $22.45/share.
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Bumble: Risk/Reward Skewed To Downside