WORK - Slack: Too Pricey For Now

Slack's (NYSE:WORK) past six months' price performance of 6.08% has outperformed the S&P 500 of -14.06%. This outperformance was mainly due to the combination of market turmoil and the current need for many employees to work from home. I believe that Slack has a decent track record of growth and growing switching costs. However, at $24, it is overvalued by 34% based on my base-case assumptions.

(Source: Seeking Alpha data)

(Source: Google)

Slack's Q4 2020 quarter outperformed expectations

Slack reported a 25% year-on-year growth in paid customers, from 88,000 to 110,000.

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