- The market has completely overlooked Groupon’s sizable ownership stake in SumUp, which we estimate has grown to at least $268m or close to 40% of the Groupon’s current enterprise value.
- Factoring in the SumUp investment, the market is valuing Groupon’s core business at just 2.9x consensus FY 22E EBITDA; at this extremely cheap valuation, very little has to go right.
- Despite the severe headwinds created by the global pandemic, Groupon’s business has stabilized.
- Recent, large decline in revenue is largely attributable to a change in revenue recognition accounting.
- With minimal leverage and the leanest cost structure in its history, Groupon is well-positioned to take advantage of accelerating fundamentals.
For further details see:
Groupon: A Valuable Hidden Asset, Surprisingly Loyal User Base, And Core Business Poised For Growth