With 110% revenue growth and Fidelity among the shareholders, Peloton Interactive (PTON) will interest a lot of investors. The company does not report positive FCF, which value investors will not appreciate. With that, growth investors will not care about the company’s lack of profitability. In our view, growth investors could pay 11x sales if revenue growth and gross profit margin continue to surprise the market. The final EV/Sales ratio could be even more significant if a lot of investors are interested in the IPO.
Source: Prospectus
Source: Prospectus
Business
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