Did you see what I did there?
Online story stock JE (Just Eat) fell 12% as at writing, whilst the Footsie storms ahead 2.2% on a good election showing by the Tories.
Stockopedia has it on a sky-high valuation of 74.4. Its Value score is 4, and Momentum score is 99. Anyone in this for a momentum trade should probably now think about making their excuses, and leave the party. Anyone not in it for a momentum play should seriously question their own judgement.
It has a market cap of £2.82b, against revenues of £157m. That’s a lofty valuation to say the least.
The dive comes as JE announced today a proposed acquisition of Menulog, which it will pay for via a placing. The purchase price is £445m. Menulog generated £13.5m in revenues and £1.2m of EBITDA.
JE’s CEO states: “Since the time of our IPO last year, we have consistently stated that participating in a disciplined manner in industry consolidation was an important strategic objective”.
Sorry, but where the CEO sees discipline, I see insane valuation levels.