Introduction
Camping World (NYSE:CWH) is an RV dealer, servicer, and camping gear retailer. The company also sells many complimentary ancillary products related to RVs and camping such as RV insurance, Good Sam club memberships, various roadside
Camping World: Massive Upside For An Absurdly And Unreasonably Cheap Stock
Summary
- Based on my estimates, Camping World is significantly undervalued at $37 per share. I estimate the stock is worth over $70 per share.
- Camping World is working on three major developments that could be transformative catalysts for the company: Electric World, Peer-to-peer rentals, and online RV sales.
- The market is currently assigning zero value to these major developments, giving shareholders today free call options on this stock.
- The stock trades for less than 5 times 2020 and my estimated 2021 free cash flow. This is, in my opinion, absurd.
I focus mostly on high quality small and microcap companies that I believe can double their stock price within 3 years (26% hurdle rate).
Analyst’s Disclosure:I am/we are long CWH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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