We are slightly raising our fair value estimate on no-moat Instacart to $34, from $33 previously, primarily due to a reduction in our assumed cash drag from working capital and our lower long-term reinvestment rate. We currently view shares as fairly valued.
Online ordering demand should remain strong, propelling Instacart’s top line and reinforcing the firm’s network effect.
Third-party intermediary platforms such as Uber and DoorDash already have established driver networks and could use their scale to take share from Instacart.
|
Metric
|
CART
|
DASH
|
UBER
|
|---|---|---|---|
Price/Earnings (Normalized) | — | 87.20 | 127.11 |
Price/Book Value | 3.05 | 6.79 | 12.32 |
Price/Sales | 1.44 | 5.06 | 3.57 |
Price/Cash Flow | 5.63 | 34.68 | 35.21 |
|
Metric
|
CART
|
DASH
|
UBER
|
|---|---|---|---|
Quick Ratio | 3.42 | 1.35 | 1.02 |
Current Ratio | 3.78 | 1.64 | 1.21 |
Interest Coverage | — | — | 3.16 |
|
Metric
|
CART
|
DASH
|
UBER
|
|---|---|---|---|
Return on Assets (Normalized) | 12.93% | 5.14% | 8.29% |
Return on Equity (Normalized) | 20.84% | 7.96% | 31.32% |
Return on Invested Capital (Normalized) | 17.92% | 5.51% | 13.80% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
AMZN
| Amazon.com Inc | Yyvctfkhph | Wcvnc | $1.9 Tril | |
BABA
| Alibaba Group Holding Ltd ADR | Jvsmmcx | Jtjb | $206.0 Bil | |
PDD
| PDD Holdings Inc ADR | Tmyfqsf | Dwtdxj | $187.7 Bil | |
MELI
| MercadoLibre Inc | Nylrchpfld | Png | $87.1 Bil | |
JD
| JD.com Inc ADR | Rpvcgtdrsj | Qqfb | $50.6 Bil | |
SE
| Sea Ltd ADR | Wxkklkgv | Yttc | $38.1 Bil | |
EBAY
| eBay Inc | Khstyqpny | Vcwwnv | $26.5 Bil | |
W
| Wayfair Inc Class A | Kdzghzsc | Frn | $8.7 Bil | |
ETSY
| Etsy Inc | Vxnnbhjfp | Qblt | $7.4 Bil |
