Saturday, February 11, 2023

Adyen stock Price and Graham Value


The Adyen IPO price in 2016 was EUR 240 today, April 2021, the share price is around EUR 1 325,-.  

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

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

Net Sales: 1 400 million Euros in 12 months. Market cap EUR 40b is 29x sales  (was > 80x sales in 2021). 

Current Ratio: 1,4  Long Term Debt is a tenth of Net Current Assets.

In recent months the company has been hiring against the trend in the tech world. In future the plan is to grow revenues more than costs thereby increasing net profits. 

Note: This type of company which is growing should be charted in log form not linear like the chart above. 

The company is growing in the US and has room for growth in Japan etc. 

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