Bloomberg Intelligence analysts put its market capitalization somewhere between $10 billion and $12 billion, below an internal valuation that was reportedly slashed multiple times last year. Bullish investors point to five consecutive quarters of profitability as evidence that it will tilt toward company expectations.
“They need to walk a thin line between being over ambitious in terms of valuation and satisfying initial shareholders,” said Josef Schuster, founder and chief executive officer of IPOX Schuster. “I’m in the $12 to $15 billion range with them probably selling 9% or 10% of the company, but they’ll need to leave some money on the table to set some demand for the stock.”
That’s lower than the $13 billion Bloomberg reported it slashed its internal valuation to in October after reducing it to $24 billion in March of last year. Looking at a broader group compiled by Bloomberg Intelligence and their enterprise value compared to expected sales for the next year, the average is 2.3, though it ranges as high as Airbnb at 6.6.