Avalara (NYSE:AVLR) stock price has fallen roughly 26% from its recent high, mostly due to multiple adjustments from the recent market turmoil. Despite the big drop in share price, I believe that Avalara has a strong track record with strong potential switching costs. At $68, it is undervalued by roughly 31% based on my base-case assumptions.
(Source: Google)
Strong revenue growth with a growing addressable market
The company has achieved decent revenue growth in recent years. Revenue has grown from $54M in 2015 to $382M in 2019, compounding at 67% year on