This stock is BYND overpriced. https://www.marketwatch.com/story/b...even-if-business-expands-perfectly-2020-05-08 To justify its current share price of $126, Beyond Meat must immediately improve its net operating profit after tax (NOPAT) margin to 6% (double its current NOPAT margin and equal to the highest margin in Tyson Foods’ history) and grow revenue by 28% compounded annually for the next 15 years. See the math behind this reverse DCF scenario. In this scenario, Beyond Meat would earn over $12 billion in revenue in 2034, which is greater than Conagra’s trailing 12 month (TTM) revenue and just below Kellogg’s TTM revenue. For reference, Allied Market Research projects the entire meat substitute market will be worth $8.1 billion in 2026. Even if we assume that Beyond Meat executives focus on profitability rather than revenue growth and can achieve an 8% NOPAT margin (higher than Tyson) and grow revenue by 24% compounded annually for the next decade, the stock is worth just $43 today — a 66% downside to the current stock price.
thats crazy i was jusT looking at this stock even though i rarely scan new names till recently. This is one of the classic examples of the stocks i was referring to in my posit about percentage moves https://www.elitetrader.com/et/threads/how-come-its-not-more-expensive.344516/
on the plus side,its only 50% as ridiculously priced as it was when it traded at 239 Im not disagreeing in any way as I presented the same argument in the other thread on BYND.. We were eventually right as the stock cratered,but we were dead wrong before being right Take a look at Growth vs Value.....Its been a one way street,especially in the latest 1 month bear market..