GoPro, Inc. $GPRO
1. Is the company undervalued?
EV/EBIT: 6.26
EV/Sales: 0.65
Price/Book: 1.51

$GPRO is cyclical stock, which is trading near all-time lows in regards to book value and sales. With that said there’s a strong case to be made that the business is headed for a material slow down and mean reversion in profitability. Nevertheless management believes they can continue to grow topline over the next 12 months. Furthermore $GPRO has a sterling balance sheet and are returning sizeable capital back to shareholders. If management is correct in their assertions, there’s a strong chance the stock is mispriced.

Link to full write-up here:

Brett Schafer's avatar
Looked at it before. Seems like they have solid mgmt team now but I still think they are running uphill on a treadmill. They can work really hard but will struggle to grow. Maybe too much of that pessimism is baked into the share price right now idk
Eric Thomson's avatar
@ccm_brett Agreed tough business to model out, but not a very high bar to clear given the valuation