$JE.L Just Eat: Just Don’t

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.

435p

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About mcturra2000

Computer programmer living in Scotland.
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