CSCO - Peloton Stock: Proving You Can Pay Too Much For Growth But What Now?
- Peloton's net income loss has grown from -$71.1 million in 2017 to -$634.2 million in the TTM as their costs exceed the rate at which revenue is generated.
- Still after shedding $115.45 per share or 67.48%, PTON trades at an 18.06x multiple on its equity yet its ROE is -42.09% and they lose money.
- Planet Fitness is back in growth mode, increased system-wide sales by 7.2%, operated profitably, and is opening 100-120 new locations.
- Peloton is another example of creating a great brand, and product, but having a completely disconnected stock price as many paid too much for its growth without doing the homework.
For further details see:
Peloton Stock: Proving You Can Pay Too Much For Growth, But What Now?