- Pinterest is used by 459 million people who visit the web to discover new ideas or trends.
- Pinterest reports an increasing average revenue per user. In the last 10-Q, the company reported an increase of 163% y/y in the average sales per user.
- I designed a financial model with a 7% WACC, growth rate of 5.1%, and EV/FCF of 30x-40x. The model results in a stock price of $88-$109.
- In the worst-case scenario, I used growth of 4.5% and EV/FCF of 25x-35x. The implied share price given by the DCF is equal to $75-$95.
- In my view, if governments don’t change the regular framework and don’t damage the website usability, Pinterest’s business model will grow.
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Don't Worry About Pinterest: Average Sales Per User Growth Of 163%