Groupon, Inc.

BMV:GRPN * Stock Report

Market Cap: Mex$10.6b

Groupon Valuation

Is GRPN * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GRPN * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRPN * (MX$220) is trading below our estimate of fair value (MX$1021.94)

Significantly Below Fair Value: GRPN * is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRPN *?

Key metric: As GRPN * is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for GRPN *. This is calculated by dividing GRPN *'s market cap by their current revenue.
What is GRPN *'s PS Ratio?
PS Ratio1.1x
SalesUS$516.38m
Market CapUS$587.18m

Price to Sales Ratio vs Peers

How does GRPN *'s PS Ratio compare to its peers?

The above table shows the PS ratio for GRPN * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
GPH 1 Grupo Palacio de Hierro. de
0.3xn/aMex$16.6b
GSANBOR B-1 Grupo Sanborns. de
0.8xn/aMex$58.4b
LIVEPOL C-1 El Puerto de Liverpool. de
0.7x6.3%Mex$141.3b
002277 Hunan Friendship&Apollo CommercialLtd
3.8xn/aCN¥4.9b
GRPN * Groupon
1.1x4.0%Mex$587.2m

Price-To-Sales vs Peers: GRPN * is expensive based on its Price-To-Sales Ratio (1.1x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

How does GRPN *'s PS Ratio compare vs other companies in the Global Multiline Retail Industry?

45 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies45PS00.81.62.43.24+
45 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GRPN * is expensive based on its Price-To-Sales Ratio (1.1x) compared to the Global Multiline Retail industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is GRPN *'s PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRPN * PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate GRPN *'s Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

JD.com

US$51.0b

Operates as a supply chain-based technology and service provider in the People’s Republic of China.

JD N

US$712.28

7D

-3.1%

1Y

45.7%

Best Buy

US$18.6b

Engages in the retail of technology products in the United States, Canada, and international.

BBY *

US$1,875.00

7D

0.8%

1Y

n/a

ODP

US$2.0b

Provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses in the United States, Puerto Rico, and the U.S.

ODP *

US$826.00

7D

0%

1Y

n/a