FTDR

frontdoor Inc.

Consumer


Presented:12/13/2019
Price:$47.14
Cap:$3.99B
Current Price:$51.37
Cap:$3.93B

Presented

Date12/13/2019
Price$47.14
Market Cap$3.99B
Ent Value$4.70B
P/E Ratio25.73x
Book ValueN/A
Div Yield0%
Shares O/S84.66M
Ave Daily Vol500,295
Short Int3.58%

Current

Price$51.37
Market Cap$3.93B
frontdoor, Inc. engages in the provision of home service plans. Its service focuses on water heaters, garbage disposals, doorbells. smoke detectors, ceiling fans, central vacuums, refrigerators, dishwashers and trash compactors. The company was founded on January 2, 2018 and is headquartered in Memphis, TN.

Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), ANGI Homeservices Inc (ANGI), Amazon Inc (AMZN), frontdoor Inc (FTDR), LYFT Inc (LYFT), Servicemaster Global Holdings Inc (SERV)

Highlights

The presenter is long shares of Frontdoor Inc (FTDR) and believes the company has significant upside around the launch of their new on-demand services. FTDR currently trades at a 14x EBITDA multiple. In her base case scenario, which assumes no acceleration in on-demand services and stable 8% - 9% top line growth in the core business, the company should trade at a 17x - 18x multiple, which gets her to a price target of ~$60 per share in 2020, significantly higher than the current mid-$40s stock price. 

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Idea Discussion

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