Cheapest e-com biz in the world?

Tiny e-com biz trading at <6x FY25 EBITDA with accelerating fundamentals

Hello Ultimate Value readers!

Over the past few weeks, I’ve been seeing a lot of bargains, particularly in the <$100m space. Being a full-time private investor, I am able to invest in anything: micro-caps, large-caps, whatever. All things equal, I’d rather have better liquidity. However, some of these opportunities are too good to pass up!

The company we are looking at is one such example. I’ve followed this company for a while and think the time is now right to own this. This is a free cash flow positive, adjusted EBITDA break-even e-commerce business in a good category. While the post-COVID environment has been tough, the company is now seeing revenue re-accelerate. I believe that the company can get back to at least a mid-teens top-line growth rate from here with substantial margin expansion ahead.

At 0.25x EV/sales, 0.7x EV/GP, and <6x FY25 EBITDA, I believe the opportunity is compelling. Let’s take a look.