TRUP - Trupanion: Love The Company But Not The Valuation
Investment Thesis
Despite the massive TAM (total addressable market) and underpenetrated market, a fresh investment in Trupanion (TRUP) is likely to generate subpar returns as it is richly valued at present. Below I provide a brief introduction to the company and then briefly talk about the opportunity before I dive deep into valuing Trupanion.
A Brief Introduction
Trupanion provides medical insurance for cats and dogs throughout the United States, Canada and Peurto Rico. Below is a description taken from Trupanion's 2019 Annual report explaining their business.
Our data-driven, vertically-integrated approach enables us to