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Abe Garver

 
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  • eBay's 'Uber Of E-Commerce Business' May Be Worth $18 Billion Too
    Fri, Jun. 13 AMZN, GOOG, EBAY 5 Comments

    Summary

    • The recent news that eBay’s local delivery plans are unraveling is misleading.
    • In reality, eBay/Shutl is heir apparent to the crown 'Uber of E-Commerce'.
    • EBay's enterprise valuation stands at $59 billion (52-week low) and Uber at $18 billion (proposed).
    • Perhaps if the market understood Shutl better, eBay's stock would be worth 30% more (e.g. $59 billion plus $18 billion).
  • E-Commerce Valuation: Offering Guidance For Buyers And Sellers
    Thu, Mar. 13 AMZN, EBAY, FGNT 5 Comments

    Summary

    • Valuation is about judgment, and multiples from a new E-Commerce Valuation Index (contained in this article) provide a framework for making value judgments.
    • Multiples based on Enterprise Value (EV) are independent of capital structure, so are of particular interest in stock trading, M&A and transactions of private companies.
    • (EV/ EBITDA) is a proxy for free cash flows and to date is the most popular of the EV based multiples (e.g. Amazon's is currently 45.1xs, the median is 18.5xs).
    • Based on experience selling e-commerce companies to large Strategics and PE groups in M&A auctions, rates of gross margin expansion (or contraction) may capture future prospects, better than EBITDA.
    • I propose that (EV/ Growth-Adjusted Gross Profit) be adopted as the new standard of relative value for e-commerce companies, and have developed a proprietary formula.
  • Shareholders Are Disrobing Talbots
    May. 25, 2012 AMZN, BFLY, COA 12 Comments
  • Facebook's Busted IPO: Double Back-Flip Not Face-Plant
    May. 22, 2012 BFLY, BX, COA 3 Comments
  • 3 Signals Amazon's Gross Margin May Keep Surprising On The Upside
    May. 15, 2012 AMZN 8 Comments
  • Watching The Tax And Debt Clocks: Long-term Capital Gains Rate Set To Skyrocket 66.7%
    Apr. 27, 2012 NFLX, WMT, AAPL 10 Comments
  • Amazon's Billion-Dollar Payday Nearing Thanks To Marketplace Fairness Act
    Apr. 26, 2012 AMZN 21 Comments
  • The 'Cyber Monday Bump' And The 20% Dump
    Nov. 29, 2011 AMZN, EBAY, OSTK 1 Comment
  • Capital Gains Tax Spike: A Quick Way To Lose 13% ... Wait Until The Ball Drops In 2012
    Nov. 15, 2011 WMT, AAPL, AMZN 9 Comments
  • 'Make Amazon Shareholders Money' Act: 10 Senators, Wal-Mart, Others Duped Into Support
    Nov. 15, 2011 WMT, BBY, GOOG 14 Comments
  • Abrupt End To Tax-Free Internet Shopping Predicted: Significant Impact On Valuations
    Nov. 9, 2011 WMT, BBY, HD 5 Comments
  • Cyber Monday Deals May Tank Valuations Of Web-Only Retailers
    Nov. 6, 2011 AMZN, EBAY, OSTK Comment!
  • Amazon.com For $33.50 A Share?
    Oct. 31, 2011 EBAY, OSTK, UNTD 31 Comments
  • Amazon's On Steroids, Only Worth $52 A Share
    Oct. 27, 2011 WMT, TGT, COST 30 Comments
  • PetMed Express Trading At 45% Discount To Peers Following Earnings
    Oct. 25, 2011 AMZN, EBAY, BFLY 4 Comments
  • Valuations Of Web-Only Retailers Could Drop 25%
    Oct. 9, 2011 AMZN, EBAY, OSTK 1 Comment