Chewy Inc

CHWY: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Chewy Earnings: Valuation Looks Appropriate After Market Selloff; Quarterly Results Solid

Sean Dunlop

Dec 4, 2024

Narrow-moat Chewy reported solid quarterly results, and a harsh market selloff during Dec. 4 intraday trading (down 7%-8%) leaves shares trading in a range we'd consider fairly valued. With our revenue and EBITDA forecasts aligning closely with FactSet consensus estimates for 2024 and 2025, and with little in the quarterly results suggestive of necessary wholesale revisions to either account, we attribute the market reaction to multiple deflation or expectations for a more resounding revenue beat. We expect to increase our $30 fair value estimate modestly, consistent with time value, with earnings arriving largely as expected.

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Chewy Inc

Chewy Earnings: Valuation Looks Appropriate After Market Selloff; Quarterly Results Solid

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