I came across of this stock today and found it was interesting so I did some quick DD of this stock before wanting to buy some.
However, I found the valuation is extremely expensive at this Ipo price of 65c.
Please correct me if I am wrong as I have found some concerns:
1. Enterprise value / revenue at 9.3x: To put this same valuation on TPW, it would have been traded at over $24! I don't think their revenue growth is better that TPW given Airtasker is not the leader in this market. (Personally I used serviceseeking.com.au). This is a very hefty valuation. If putting it back at an average of 4x, it should be traded at ~30c.
2. The major seed investor, Kerry Stoke, wanted an exit at this price, and you don't want to bet against him.
3. Cash flow and profit still negative in 2022.
4. There is no moat in this business. Serviceseeking, hipage, oneflare...etc are all competitors basically offer the same thing.
Having said that, it may be listed at premium tomorrow because there are a lot of punters who don't care the valuation. However, I wouldn't touch it at this price.
ART Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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