We are slightly raising our fair value estimate on no-moat Instacart to $34, from $33 previously, primarily due to a reduction in our assumed cash drag from working capital and our lower long-term reinvestment rate. We currently view shares as fairly valued.
Online ordering demand should remain strong, propelling Instacart’s top line and reinforcing the firm’s network effect.
Third-party intermediary platforms such as Uber and DoorDash already have established driver networks and could use their scale to take share from Instacart.
|
Metric
|
CART
|
DASH
|
UBER
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.64 | 87.12 | 129.22 |
Price/Book Value | 2.69 | 6.78 | 12.53 |
Price/Sales | 1.55 | 5.06 | 3.63 |
Price/Cash Flow | 6.28 | 34.65 | 35.80 |
|
Metric
|
CART
|
DASH
|
UBER
|
|---|---|---|---|
Quick Ratio | 4.15 | 1.35 | 1.02 |
Current Ratio | 4.51 | 1.64 | 1.21 |
Interest Coverage | — | — | 3.16 |
|
Metric
|
CART
|
DASH
|
UBER
|
|---|---|---|---|
Return on Assets (Normalized) | 13.18% | 5.14% | 8.29% |
Return on Equity (Normalized) | 29.72% | 7.96% | 31.32% |
Return on Invested Capital (Normalized) | 25.65% | 5.51% | 13.80% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
AMZN
| Amazon.com Inc | Ddrspskjn | Cvfz | $2.0 Tril | |
BABA
| Alibaba Group Holding Ltd ADR | Qmfptszw | Ncwn | $194.2 Bil | |
PDD
| PDD Holdings Inc ADR | Wmtbkdfgt | Rssrpw | $181.2 Bil | |
MELI
| MercadoLibre Inc | Bdlxdkqx | Vnnz | $85.9 Bil | |
JD
| JD.com Inc ADR | Lkdjkdkf | Yld | $48.7 Bil | |
SE
| Sea Ltd ADR | Yknbqynh | Kmlb | $37.9 Bil | |
EBAY
| eBay Inc | Tqqxgwpyw | Shrmcx | $25.5 Bil | |
W
| Wayfair Inc Class A | Jswfhrsdp | Mdzx | $8.6 Bil | |
ETSY
| Etsy Inc | Ntpwghb | Blc | $7.2 Bil |
