Tuesday, October 08, 2019
Adyen 2019 Graham Defensive Value and Stock Price
The Price is very different than what a Benjamin Graham Defensive Investor might be willing to pay.
At Earnings per Sahe of roughly 7 Euros? The company is selling at a Price / Earnings ratio of over 86. 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: 2 000 million Euros in 2019? (Over EUR 200b processed).
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 600 Euros? Time will tell.
Question for growth is what is the TAM: Total Addressable Market and how much can Adyen get? I don't know.