Should you buy Coupang stock? (January 2024)

Published first on https://www.3minutebreakdowns.com Coupang stock analysis. Ticker: $CPNG Coupang is often called the Amazon of South Korea. But the stock has performed poorly, falling 75% since its IPO. At the latest share price the company has a market cap of 27 billion. Account for cash and debt and the enterprise value is 22.8 billion. That’s less than the company’s annual revenue which totals 23 billion over the last 12 months. Adjusted EBITDA over the same period is 991 million and free cash flow is 1.8 billion. So Coupang stock looks cheap at under 1 times revenue and only 12 times free cash flow. Amazon by comparison trades at 3 times revenue and 100 times free cash flow. However, Coupang deserves a lower multiple to Amazon because Coupang lacks Amazon’s high margin segments like Cloud and 3rd party services. Also, Coupang’s free cash flow is inflated this year due to working capital moves that are a one-off. Free cash flow should converge with adjusted ebitda over time so the true multiple is closer to 22/23. That valuation, however, is still reasonable. After all, Coupang has gone from zero revenues to over $23 billion in only 14 years, even faster than Amazon. And this year’s revenues are up 14% despite a difficult economic environment. #investing #stocks #stockstowatch #coupang