- QRTEA has deceptively low price-based multiples in comparison to other firms in the industry due to assets that are mostly composed of goodwill and intangibles.
- Based on our Asset Valuation, Earnings Power model and Free Cash Flow analysis, Qurate seems to be fairly valued.
- We believe that free cash flow growth will primarily depend on management's ability to transition to growth from e-commerce.
- The long-term debt inherent in the business is a cause for concern during times of EBIT and multiple compression.
For further details see:
Qurate Retail: Leaning More Towards The Value Trap Argument Than A Value Opportunity