* Note: Prices are in Million (M) USD.
Description:
ThredUp Inc. (TDUP) is a leading online resale platform specializing in the buying and selling of high-quality second-hand clothing, shoes, and accessories for women and children. Headquartered in Oakland, California, ThredUp leverages technology to create a sustainable shopping experience, enabling customers to access a wide range of gently used fashion while promoting circular economy practices. With a focus on quality and affordability, the company positions itself at the intersection of e-commerce and sustainability, appealing to environmentally conscious consumers in the growing thrift and second-hand market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $41 M
Debt : $25 M
EBITDA : $-6 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Trade & services
Industry: Retail-catalog & mail-order houses
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $-41 M
Average Revenue: $229 M
Revenue Converted To Free Cash Flow (%): -17.8%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $260 M
Revenue 5 Years Ago (2019-12-31): $164 M
Total Growth over 5 Years: 58.7%
5-Year Revenue CAGR (Historical): 9.7%
Forward 5-Year CAGR (Tapered): 7.7%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $112 M
Share Count 5 Years Ago (2020-12-31): $93 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.12
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.12
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: -133.4%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $9.14
52-Week Low: $0.50
Threshold Price (15% Above 52-Week Low): $0.58
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,126 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $0.05
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 8 points to above ThredUp Inc (TDUP) stock.
Fair Value PE 9, Industry Based PE 20, Growth Based PE 15, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 4 values, average assigned is 15.55. The fair value of ThredUp Inc (TDUP) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
