CVNA

Carvana Co. - Ordinary Shares - Class A

Consumer, Industrial/Transportation, TMT


Presented:09/11/2019
Price:$77.97
Cap:$3.88B
Current Price:$192.02
Cap:$23.78B

Presented

Date09/11/2019
Price$77.97
Market Cap$3.88B
Ent Value$3.95B
P/E RatioN/A
Book Value$3.25
Div Yield0%
Shares O/S49.77M
Ave Daily Vol1,597,139
Short Int54.38%

Current

Price$192.02
Market Cap$23.78B
Carvana Co. is a holding company and an eCommerce platform, which engages in the buying of used cars and provision of different and convenient car buying experience. It operates through the following segments: Vehicle Sales; Wholesale Vehicle Sales; and Other Sales and Revenue. The Vehicle Sales segment consists of used vehicle to customers through website. The Wholesale Vehicle Sales segment comprises of the proceeds from vehicles sold to wholesalers. The Other Sales and Revenue segment composes of sales of automotive finance receivable originate and sell to third parties. The company was founded by Ernie Garcia, III, Benjamin Huston and Ryan Keeton on November 29, 2016 and is headquartered in Phoenix, AZ.

Publicly traded companies mentioned herein: Ally Financial Inc (ALLY), CarMax Inc (KMX), Carvana Co (CVNA)

Highlights

The presenter is long shares of Carvana Co (CVNA), the e-commerce platform for buying and selling used cars. He considers CVNA a great business with a strong management team that has significant growth runway due to its value proposition and operating strategy. As the company continues to expand and build market share, he expects its EPS figure to reach $9 five years out. Applying a similar low- to mid-20x earnings multiple that CarMax (KMX) received during its growth stage would imply that shares, currently priced at ~$80 per share, are undervalued. His base-case results in a 25%+ IRR with considerable additional upside if mature market shares can surpass those of KMX.

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Idea Discussion

Commentor 1 - 2 weeks ago

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