Lyft

1.12 (2.67%)

NASDAQ:LYFT | Last traded on 11-15-2019 4:00 PM

Market Reaction

Offer Price

$72.00

Today Open Price

$42.18

Change Since IPO

Market Cap

$12.4B

Day High

$43.93

Day Low

$41.75

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Featured Analysis

Lyft is significantly overvalued despite trading at approximately 10 times trailing sales. It is also losing about fifty cents for every dollar sold, which alarms. Finally, it may be losing more money than any other company in history to go public. This is a lottery ticket you buy where you hope the bull market holds. Remember, when a company goes public, it does so to raise money or to off risk for existing shareholders. Most companies do not need to raise money in the public market because of the robust private equity market.

Company Data

Location

San Francisco, CA

Valuation

$19.6B

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Founded

2012

Total Shares Offered

273,097,591

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Employees

4,791

IPO Date

2019-03-29

Background Information

Lyft, Inc. is a consumer transportation service based in San Francisco, CA with all of the other major software and technology firms. Lyft utilizes the Lyft application to harness their main service, ridesharing in automobiles, but they also operate with bicycles and scooters. It is a part of the decentralized business model wave that has captivated consumers and potential investors for the past decade.

Financial Analysis

Years 2016 2017 2018
Revenue growth -- 209% 104%
Net profit margin -199%-65%-42%
Valuation -- -- $20B
Revenue multiple -- -- 9x
Profit multiple -----22x

Financial Information

Income Statement ($M) 20162017 2018
Revenue3431,0602,157
Cost of goods sold2796601,243
Gross profit64400913
Total operating expense1,0361,7683,134
EBIT(693)(708)(978)
Pretax profit(682)(688)(911)
Net income(683)(688)(911)
Balance Sheet ($M) 20162017 2018
Total current assets2,5642,320
Cash and cash equivalents1,106518
Total assets3,0173,760
Total current liabilities6971,449
Total liabilities7121,479
Total shareholder equity1,9792,871
Total liabilities and equity3,0173,760
Cash Flow Statement ($M) 201620172018
Net cash from operating activities(487) (394)(281)
Net cash from investing activities(408) (991)(1,044)
Net cash from financing activities775 2,049852
Net increase in cash and cash equivalents(120) 664(472)