Added to YB: 2026-04-13
Pitch date: 2026-04-09
TOST [neutral]
Toast, Inc.
+4.75%
current return
Author Info
Bob’s Payment Stock Substack is a former analyst and portfolio manager. Fundamental buy-and-hold investor. Talking stocks and markets. Focus on Payments, Financial Technology, and Payroll and HCM. Sign up for the newsletter.
Company Info
Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, India, and internationally.
Market Cap
$15.4B
Pitch Price
$25.92
Price Target
41.00 (+61%)
Dividend
N/A
EV/EBITDA
35.35
P/E
46.93
EV/Sales
2.19
Sector
Financial Services
Category
value
Is Toast A Buy?
TOST (overview): Leading U.S. SMB restaurant platform trading 17.5x 2026 adj EBITDA high-end guide (~$785M), but 26.5x normalized EBITDA after adjusting for SBC+RPT ($270M or 11.5% recurring gross profit). 2x valuation premium vs Adyen/Block peers despite similar ~21% growth seems rich. Core U.S. biz at 40% margin subsidizing $84M loss in emerging markets (int'l, enterprise, retail). DCF implies $32-41 fair value (25-60% upside) using 9-10% discount rate.
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