Added to YB: 2021-05-10
Pitch date: 2021-05-10
HNST [bearish]
The Honest Company, Inc.
+65.53%
current return
Author Info
No bio for this author
Company Info
The Honest Company, Inc. a personal care company, provides personal care products for babies and adults.
Market Cap
$638.3M
Pitch Price
$16.65
Price Target
11.28 (+97%)
Dividend
N/A
EV/EBITDA
41.97
P/E
-53.97
EV/Sales
1.58
Sector
Personal Care Products
Category
value
The Honest Co. (HNST), is Honestly Overvalued
HNST (short): The Honest Company’s $19.42 share price overvalues a still-unprofitable clean-consumer-products brand whose 27.6% 2020 growth benefited from pandemic-driven sanitization demand. At a ~$1.7B enterprise value, it trades at 5.6x sales and 149.5x adjusted EBITDA. A DCF assuming 15% sales CAGR through 2025, a 12% operating margin and 15x exit multiple yields $11.28 per share, implying 41% downside.
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