- Party City has been hit hard this year with a large revenue and earnings decline.
- This came after years of difficulty in keeping up with E-commerce and large losses in 2019 due to the chronic helium shortage.
- Party City's share price has made an extreme recovery after a series of good news and what appears to be a large short-squeeze.
- Today, there are few short sellers left and PRTY's high forward "EV/EBTIDA" of 20X makes it seem quite a bit overvalued.
- While Party City has taken steps in the right direction both financially and operationally, it has a long way to go before it is a safe long-term bet.
For further details see:
Party City: The Short-Squeeze Rally Is Ending, Stock May Be Overvalued By Over 50%