APT AU

Afterpay Ltd.

TMT, Finance/Real Estate


Presented:10/01/2020
Price:A$80.45
Cap:$17.91B
Current Price:A$66.47
Cap:$15.63B

Presented

Date10/01/2020
PriceA$80.45
Market Cap$17.91B
Ent Value$12.68B
P/E RatioN/A
Book ValueA$3.53
Div Yield0%
Shares O/S284.29M
Ave Daily Vol2,436,822
Short IntN/A

Current

PriceA$66.47
Market Cap$15.63B
Afterpay Ltd. engages in the provision of technology-driven payments solutions. It operates through the following segments: After Pay AU, After Pay U.S., After Pay Other, Pay Now, and Corporate. The After Pay AU segment consists of Afterpay Australia platform. The After Pay U.S. segment comprises of Afterpay United States platform. The After Pay Other segment includes other Afterpay outside of Australia and United States. The Pay Now segment offers mobility, health, and e-services. The Corporate segment consists of other group expenses. The company was founded by Nicholas David Molnar and Anthony Mathew Eisen and is founded on July 31, 2017 and is headquartered in Melbourne, Australia.

Publicly traded companies mentioned herein: Afterpay Ltd (APT AU)

Highlights

The presenter is long shares of Afterpay Ltd (APT AU), the Australian-listed buy now, pay later (BNPL) provider. Despite APT’s expensive valuation (~1x next year’s GMV, ~25x forward revenue), he thinks the company has a strong opportunity to beat on growth over the next five years and justifies the trading multiple as GMV is growing 100% annually. By 2026, he expects GMV to have grown from the current ~AUD$11B to ~AUD$125B on the back of strong geographic and in-store expansion. Based on a 25x multiple on his 2026 earnings projection, the presenter reaches a price target of ~AUD$150 per share. 

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Idea Discussion

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