Chewy: Fairly Valued

Feb. 21, 2022 2:14 AM ETChewy, Inc. (CHWY)
Matthew Craw profile picture
Matthew Craw


  • The pet industry is expected to triple by 2030 and Chewy is set up perfectly to capitalize on that growth.
  • CHWY will need to reinvest at high dollar amounts to fully capture its growth potential.
  • Chewy is valued fairly in the market as my DCF model currently values Chewy near $55/share.

Dog catching a biscuit.

ClarkandCompany/E+ via Getty Images

Chewy, Inc. (NYSE: CHWY) is significantly larger than the typical company that I investigate (~$20B Market Cap), but my Dad works in the pet industry and has been pounding the Chewy drum for a while now. As a

Chewy Revenue

Source: Author Created using data from Seeking Alpha

Chewy DCF Valuation

Source: Author's Work

This article was written by

Matthew Craw profile picture
Former auditor turned investor/entrepreneur who loves learning and researching businesses in all industries. My articles focus on valuation along with sharing my research with the investing community. Founder of Dark Side of the Street Newsletter.Feel free to message me!

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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