Lets look at it another way, THG officially puts itself up for sale?? (Some Weekend Thinking:))14 Apr 2022 19:30
Now how much would it be worth?
Current market cap is £1.3 billion pahahahahahaha
I think multiple Private Equity groups would be fighting for it, at atleast several billion minimum!!!!! Dont just want to be seen as ramping, so lets explain...
IPO price £5, worth ~£5 Billion, which is very reasonable, as PE offered £4 Billion in 2018. Lets see what's happened since then...
Explanation:
Take out cash and acquisitions since IPO:
Cash - £530 million
Pericone MD - $60 million
Dermstore - $350 million
THG nutrition acq - £59.5 million
Brighter Foods - £43 million
Bentley Laboratories - $255m
Cult Beauty - £275 million
Total £1.42 billion
*And since then, business has grown immensely organically, paid down debt, THG Ingenuity clients have tripled, HUGE capital investments globally blahdy blahdy blah etc etc.
So if everything else stayed the same, and simply sold acquisitions back at the same price (may have grown in value, but lets forget that), aggregate the cash + acquisitions cash, and return it to shareholders, it would be worth £1.42 billion, MORE THAN current market cap, i.e. shareholders would get back more than current share price!!!!
But then we still have the WHOLE existing business at IPO remaining, so all of a sudden the £5 Billion IPO business is worth zero (yes ZERO), you say that cant be right, well thats how the market is valuing THG!!!
Hence whichever you look at it, it's simply mindboggling!! Hope the penny drops on the massive undervaluation, most pi's AND the market do not understand, or fail to grasp some basics, or purposefully choosing to ignore through manipulation (mafia in suits) ;)
No wonder private equity are circling!
Sign In
Follow the stocks
