When you linking your Twitter Account Market Wire News Trending Stocks news and your Portfolio Stocks News will automatically tweet from your Twitter account.
Be alerted of any news about your stocks and see what other stocks are trending.
DL - Meten International IPO: A Buy If The Enterprise Value Nears $450 Million
China Distance Education Holdings Limited American Depositary Shares
With 49% gross profit margin and 24% revenue growth, Meten International (MEDU) will most likely have an EV/Sales ratio close to 2.5x-3.5x. Notice that other competitors with less revenue growth are selling at 0.46x-2.8x forward sales. If the total enterprise value goes below $450 million, the company will represent a buying opportunity.
With that, there are corporate governance risks. The company expects to have a dual-class ordinary share structure. Also, it may be a controlled entity after the IPO. If the Board of Directors is not independent, the market could react by pushing