Despegar.com Intrinsic Value – Despegar.com: Rapidly Growing Tech Trading At Incredible Value Of 1X Revenues

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Despegar.com ($NYSE:DESP) is a rapidly growing tech trading platform that is currently trading at an unbelievable value of one times revenue. This puts the stock at an incredible bargain and provides investors with the opportunity to capitalize on its potential for profitability. It has become the most visited travel site in Latin America and is one of the largest e-commerce businesses in the region.

The company’s success has been attributed to its world-class customer service, competitive pricing, easy-to-use website, and wide range of travel options. With its tremendous growth potential and attractive price point, DESPEGAR.COM is a stock worth considering for any investor looking to capitalize on its potential for profitability.

Earnings

Despegar.com has experienced rapid growth in the past three years. According to its most recent financial report for the quarter ending March 31, 2021, DESPEGAR.COM earned 51.85M USD in total revenue and lost 37.38M USD in net income. This is a 53.9% decrease in total revenue compared to the previous year. Despite this decline, DESPEGAR.COM has seen significant growth in its total revenue, increasing from 51.85M USD to 158.71M USD over the past three years.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Despegar.com. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Despegar.com. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Despegar.com. More…

Key Ratios Snapshot

Some of the financial key ratios for Despegar.com are shown below. More…

Price History

On Friday, the stock opened at $8.2 and closed at $8.2, down 0.2% from its previous close of 8.2. This means that investors can get into the company for a fraction of its true worth. Investors should take advantage of the current low price to get in on what could be a huge return on investment in the future. The company has seen tremendous success and growth since its inception, and it could be poised for even greater success in the future if it continues to innovate and stay ahead of the competition. Despegar.com_Rapidly_Growing_Tech_Trading_At_Incredible_Value_Of_1X_Revenues”>Live Quote…

Analysis – Despegar.com Intrinsic Value

As GoodWhale, we have taken a close look at the financials of DESPEGAR.COM. After analyzing the data, we have come to the conclusion that the fair valuation of DESPEGAR.COM share should be around $16.3. This was calculated by using our proprietary Valuation Line. Currently, the shares are traded at around $8.2, which means they are undervalued by 49.8%. This provides an opportunity for investors who can buy the stock at a very attractive price. More…

Peers

It competes with other online travel companies such as Yatra Online Inc, W&E Source Corp, and Travel+Leisure Co. These companies all strive to provide the best services to their clients by offering competitive prices, extensive travel options, and excellent customer service.

– Yatra Online Inc ($NASDAQ:YTRA)

Yatra Online Inc is an Indian online travel services company which provides customers with a platform to research and plan their travel, book flights, hotels, and other services. As of 2023, Yatra Online Inc has a market capitalization of 111.59 million USD. The company’s return on equity (ROE) is -12.28%, which indicates a decrease in profitability compared to the previous year. This can be attributed to increased competition in the online travel services space, as well as the effects of the COVID-19 pandemic on the travel industry.

– W&E Source Corp ($OTCPK:WESC)

W&E Source Corp is a business and technology services company that provides services ranging from IT consulting to managed services and project implementation. The company has experienced strong growth over the last few years, reflected in its market cap of 793.52k as of 2023. Additionally, W&E Source Corp has been able to achieve a Return on Equity of 49.09%, which is higher than the industry average. This suggests that the company is efficiently using its assets and is well-positioned to generate higher returns in the future.

– Travel+Leisure Co ($NYSE:TNL)

Travel+Leisure Co is a travel, hospitality, and lifestyle company that provides customers with an array of travel-related services and products. It has a market capitalization of 3.02 billion dollars as of 2023, which means that its stocks are valued at 3.02 billion dollars. Additionally, its Return on Equity (ROE) of -46.67% indicates that the company has had a poor financial performance in recent years. This could be due to a number of factors, including the pandemic which has affected the travel industry significantly.

Summary

Despegar.com is a rapidly growing online travel company that has enjoyed great success since its inception. Despite its impressive growth and profitability, the stock is currently trading at only 1x revenues. While this suggests that the company is undervalued from a financial perspective, potential investors should carefully consider the risks associated with investing in such a young company.

These risks include intense competition from larger players in the industry, currency fluctuations, and macroeconomic concerns such as economic downturns or changes in consumer behavior. Nevertheless, Despegar.com’s strong track record and continued innovation indicate that it could be a profitable investment for those willing to take on the risks involved.