BILL

Bill.com Holdings Inc

TMT, Finance/Real Estate


Presented:06/29/2021
Price:$186.38
Cap:$15.51B
Current Price:$55.76
Cap:$5.95B

Presented

Date06/29/2021
Price$186.38
Market Cap$15.51B
Ent Value$11.24B
P/E RatioN/A
Book Value$10.48
Div Yield0%
Shares O/S83.20M
Ave Daily Vol1,209,297
Short Int8.43%

Current

Price$55.76
Market Cap$5.95B
Bill.com Holdings, Inc. operates as a holding company. It engages in the provision of cloud-based software solutions. The firm simplifies, digitizes, and automates complex back-office financial operations for SMBs. Its software helps customers to generate and process invoices, streamline approvals, send and receive payments, sync with their accounting system and manage their cash. The company was founded by Rene Lacertea on August 2, 2018 and is headquartered in Palo Alto, CA.

Publicly traded companies mentioned herein: Bank of America Corp (BAC), Bill.com Holdings Inc (BILL), JPMorgan Chase & Co (JPM), KeyCorp (KEY), Wells Fargo & Co (WFC)

Highlights

The presenter is long shares of Bill.com Holdings Inc (BILL), a B2B company that provides payment flow automation software to SMBs in the US. The value proposition for customers is attractive, as BILL automates an otherwise arduous process of turning invoices into payments (e.g., compliance, workflow approvals, remitting payments, etc.). Over the next few quarters, he expects revenue growth to accelerate, driven by BILL moving past COVID-related total payment volume (TPV) per customer weakness and capitalizing on the transaction segment’s monetization opportunities. He values BILL using a four-year DCF model and discounts it back to reach a one-year price target of $225 – $235 per share, which would represent 22% – 27% upside from the current $185 share price.

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Idea Discussion

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