Australia's largest stock trading and investment forum Australia's #1 stock forum

APT

Click for more information

0.00%

$66.47 afterpay limited

To be fair, the millennial method described is helpful for...

First 635 Last

Share
Profile

Follow
jnkmbx

461 Posts.

21

18/01/22

11:56

Post #: 58942602
Share

Originally posted by aruc6393: ↑

Yep, this exactly. A lot of buyers of Afterpay stock are actually the millenials that use it the product. Their train of thought: "Oh After pay is big, I use Afterpay, my friend use Afterpay, I buy Afterpay stock".

The issue is they don't understand the financial predicament the business is in. It is simply not profitable (and shows no signs of being able to turn a profit), and is only staying afloat due to capital raises which won't last forever. The fact that it even got valued anywhere near $30B is just absolutely mind boggling. Even right now at $20B it is in my opinion astronomically overpriced to the point where the valuation ratios of most blue chip profitable growth stocks dont come close to. Some of these eye-watering ratios below, based on the latest traded share price.

ROE: -13.9%
Free cash flow margin: -70.9%
LTM to EBITDA: -486x
LTM price to Diluted EPS: - 125.51x
LTM Price to NTA: 18.57x

The only saving grace is that the SP is largely tethered Block SP. Now I don't know much about Block's financials, so I can't comment there, but IMO you'd be brave to hold this one.

Expand

To be fair, the millennial method described is helpful for sensing trends, however acting on that train of thought alone is obviously dangerous.

APT Price at posting: $68.63 Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

There are more pages in this discussion • 26 more messages in this thread...

First 635 Last

Add APT (ASX) to my watchlist