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Yandex: Taxi And E-Commerce Creating Value
Summary
- According to our valuation model, there is potential for the stock to grow by 10%-12% in the long term to the level of $73-$75.
- Even though Yandex's advertising revenue was below 50% for the first time, the company remains strongly dependent on this business area as it consistently generates positive EBITDA and FCF.
- The taxi segment will grow by an average of 15%, while becoming a new cash cow for other Yandex projects.
- The e-commerce segment continues to cause losses until at least 2024, and spends the FCF that the advertising and taxi businesses generate.
I work as a financial analyst and specialize in the analysis of telecom and IT companies. In my spare time, I search for undervalued companies on the stock markets. Feel free to contact me if you have any questions or suggestions. I am also open for new opportunities.
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