- Revolve is down 30% from its post-earnings peak, due to fears of aggravation in the outbreak of COVID-19 and gloomy consumer sentiment.
- However, the company is turning into a cash flow machine, with a fortress balance sheet and almost no debt.
- The intrinsic value indicates an upside of 25% from current levels.
- The relative value of Revolve can vary, and depends on whether the company will enjoy the multiples of the innovative "fash-tech" companies or those of the traditional fashion companies.
- I rate Revolve as a BUY, but there are few important caveats to take into account before investing in this company.
For further details see:
Revolve: A Cash Flow Machine In The Making