- Long a laggard, GAIA shares may finally be poised to rise in 2021, driven by free cash flow generation and, perhaps, the return of capital to shareholders.
- Investors will be able to value GAIA using EV/EBITDA for the first time in 2021 and at about 9x for a profitable business growing revenue by 20+%, it’s hardly expensive.
- Closest public comparable, CURI, has a market value 3.5x that of GAIA despite lower forecasted revenues in 2021 and considerable cash burn well into 2022.
- Intriguingly, GAIA holds a $10 million hidden asset at investment cost on the balance sheet that could be revealed and monetized in 2021.
- Value-creating ideas for the board to consider are collapsing the dual-class share structure, monetizing the hidden asset and repurchasing GAIA stock.
For further details see:
Gaia: How The Stock Price Goes Higher In 2021