FTCH

Farfetch Ltd - Ordinary Shares - Class A

TMT, Consumer


Presented:08/11/2021
Price:$45.54
Cap:$16.16B
Current Price:$0.64
Cap:$0.25B

Presented

Date08/11/2021
Price$45.54
Market Cap$16.16B
Ent Value$24.02B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S354.77M
Ave Daily Vol4,687,258
Short Int6.44%

Current

Price$0.64
Market Cap$0.25B
Farfetch Ltd. engages in the provision of technology platform for the luxury fashion industry. It operates through the following segments: Digital Platform, Brand Platform, and In-Store. The Digital Platform segment activities include the Farfetch Marketplace, FPS, BrownsFashion.com, StadiumGoods.com, and Farfetch Store. The Brand Platform segment is comprised of design, production, brand development and wholesale distribution of brands. The In-Store segment covers the activities of group-operated stores including Browns, Stadium Goods and certain brands in the New Guards portfolio. Its products include womenswear, menswear, kidswear, vintage, fine watches, and fine jewelry. The company was founded by José Manuel Ferreira Neves in 2007 and is headquartered in London, the United Kingdom.

Publicly traded companies mentioned herein: Airbnb Inc (ABNB), Alibaba Group Holding Ltd (BABA), Cie Financiere Richemont SA (CFR SW), DoorDash Inc (DASH), Etsy Inc (ETSY), Farfetch Ltd (FTCH), LVMH Moet Hennessy Louis Vuitton SE (MC FP), MercadoLibre Inc (MELI), Shopify Inc (SHOP)

Highlights

The presenter is long shares of Farfetch (FTCH), viewing the company as a luxury e-commerce winner with upside to earnings over the medium term and potential for the stock to rerate higher. FTCH operates a luxury e-commerce business in a $300B global personal luxury goods market, and he believes it can further penetrate the luxury e-commerce segment through both its marketplace and platform solutions businesses. The stock currently trades at ~$45 per share, and he estimates FTCH can grow revenues at a ~30% CAGR from 2020 - 2024. He applies an 8x multiple to his 2024 revenue estimate, which yields an $87 share price (~90% upside).

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Idea Discussion

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