Solo Brands: A Great Deep Value Candidate

Yield Huntsman
33 Followers

Summary

  • Solo Brands has seen share prices decrease by over 75% of their original IPO price of $17 per share, bringing its PE ratio to about 3.6.
  • In addition to already-impressive growth figures, future growth appears promising, given continued success in brand-building and proven business strategies.
  • Traditional valuation methods (i.e., Discounted Cash Flow) prove inaccurate, given the start-up nature of the business; despite this, shares are clearly trading at a discount given growth prospects.
  • As far as technical analysis, share prices have found some level of support and should have no issue rebounding to higher levels.

Adventurous Man Sea Kayaking in the Pacific Ocean.

edb3_16/iStock via Getty Images

Introduction and Thesis

Operating via four separate sites, Solo Brands (DTC) utilizes its expertise in direct-to-consumer e-commerce to drive sales in outdoor lifestyle products. Since its founding in 2011, Solo Brands has grown by the addition of three brands, offering adequate diversification, and

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33 Followers
Welcome to the Yield Huntsman! I'll be covering a range of topics, largely focused on growth, in promoting smart investment choices through various valuation methods.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DTC over 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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