JMIA - Jumia's Growth And Risky Nature Not Enough To Support Valuation

• JMIA's forward revenue growth, lack of profitability, and high amount of risks put downward pressure on a seemingly exuberant valuation.
• With operations in just 11 countries, JMIA has access to 70% of Africa's GDP and internet users, therefore, the payoff for expansion looks poor.
• Risks such as infrastructure, urban development, internet access, political instability/corruption, and cash burn could impede growth potential.
• JMIA trades at 20x FY20 sales, 17x FY21 sales, and 40x book multiples.

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