IBM - Grid Dynamics: Just Not Worth The Risks Right Now

• Grid Dynamics works together with companies that generate breakthrough digital goods and experiences to provide digital transformation projects.
• Grid Dynamics lost a lot of its value due to negative industry momentum but even more so by the current political situation in Eastern Europe.
• Next to the risk of the Ukraine invasion, the stock deals with intense competition, low EBITDA, aggressive investment strategy, concentration risks.
• With the help of the growth and margin analysis and the current valuation, I estimated a forward valuation.
• The forward valuation doesn’t look so rewarding, especially considering the high-risk level of this stock. In contrast, other players in the industry seem to have a much better risk/reward ratio.

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