Monday, June 18, 2018

Adyen: interesting stock price... not a Graham Defensive Stock at the moment.

Ayden went public in June 2018. The old shareholders who sold a little over 10% of their shares received 240 Euros, if I understand correctly. The first price normal share buyers were able to pay was 400 Euros, the institutions that were able to buy before opening, were able to pocket the difference?

The Price is very different than what a Benjamin Graham Defensive Investor might be willing to pay.

At Earnings per Sahe of roughly 5 Euros? The company is selling at a Price / Earnings ratio of over 80. Profits must increase by over 500% in the near future to justify the current price that "Mr. Market" is asking.

The company itself seems fantastic, great growth and a good balance sheet.

Sales: 1 500 million Euros in 2018?

Current Ratio: 1,3  , Long Term Debt is lower than Net Current Assets.

Dividend: Adyen intends to retain any profits to expand the growth and development of Adyen's business and, therefore, does not anticipate paying dividends to its Shareholders in the foreseeable future.

Chances are 240 Euros is nearer intrinsic value than today Price of 411 Euros? Time will tell.

Comments, questions or E-mails welcome:

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