Why the Honest Company's IPO Is Overvalued: New Constructs

May 5, 2021  · He added that the company held just 1.4% of market share in 2019, and its lack of shelf space is a competitive disadvantage. The Honest Company even acknowledged this as a risk in its IPO filings.


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Why The Honest Company's IPO Is Overvalued: New Constructs

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May 5, 2021  · He added that the company held just 1.4% of market share in 2019, and its lack of shelf space is a competitive disadvantage. The Honest Company even acknowledged this as a risk in its IPO filings.

businessinsider.com

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Honestly Overvalued

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May 4, 2021  · Revenue Growth and Shrinking Losses. The Honest Company has been unable to turn a profit so far, though it was close in 2020. Revenue grew 28% year-over-year (YoY) in …

newconstructs.com

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Why The Honest Company Is Overvalued Ahead Of Its IPO, …

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May 5, 2021  · He added that the company held just 1.4% of market share in 2019, and its lack of shelf space is a competitive disadvantage. The Honest Company even acknowledged this as a …

businessinsider.nl

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Why The Honest Company Is Overvalued Ahead Of Its IPO, …

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David Trainer said The Honest Company's sustainable product branding is a "nice gimmick" but not enough to justify a valuation above $1.4 billion. Why The Honest Company is overvalued …

businessinsider.in

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The Honest Company (HNST) Shares Skyrocket, What You Need …

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Nov 13, 2024  · What The Market Is Telling Us. The Honest Company’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. ... has set a new 52-week …

yahoo.com

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After Regaining Consumer Trust, Jessica Alba’s Honest Company Is …

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May 3, 2021  · After regaining consumer trust, Jessica Alba’s Honest Company is going public at a $1.5 billion valuation. Here’s everything you need to know. The Honest Company’s revenue …

businessofbusiness.com

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The Honest Company IPO: Finding Fair Value (Private:HNST)

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Apr 16, 2021  · Given that Honest Company had revenue of $300 million in 2020 and we're projecting revenues of $378 million for 2021, we believe a fair value range for the company …

seekingalpha.com

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Why The Honest Company's Stock Swooned In December

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Jan 7, 2025  · That goes a long way to explaining the more than 16% decline of The Honest Company's (NASDAQ: HNST) stock in December. The drop can also be attributed to a …

nasdaq.com

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Honestly Overvalued - LinkedIn

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May 5, 2021  · The Honest Company has been unable to turn a profit so far, though it was close in 2020. Revenue grew 28% year-over-year (YoY) in 2020 and Core Earnings [1] improved from …

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Honest Co. Sets IPO Terms, As Company Founded By Jessica Alba …

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Apr 26, 2021  · The Honest Company Inc. Honest Co. sets IPO terms, as company founded by Jessica Alba could be valued at up to $1.5 billion. ... World Markets. Back. Investing. World …

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$HNST - The Honest Company - Currently Overpriced But An

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The Honest Company is also growing at much slower pace. In the short to medium term, I believe this stock will see $10-12/share as we learn more. If shares dip and if second quarter growth …

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FAQs about Why the Honest Company's IPO Is Overvalued: New Constructs Coupon?

Is the Honest Company's IPO overvalued?

The Honest Company's IPO is overvalued, according to David Trainer, CEO of investment research firm New Constructs. At the midpoint of its IPO price-range, Jessica Alba's sustainable products company has an expected valuation of roughly $1.4 billion, which Trainer says is "honestly overvalued." ...

How to value the Honest Company ahead of the IPO?

Some analysts aren’t exactly sure how to value The Honest Company ahead of the IPO. TechCrunch’s Alex Wilhelm pointed out that Honest’s financials paint a favorable picture, despite it reporting net losses in 2019 and 2020, but its IPO could be an attempt to ride the wave of other successful public debuts this year. ...

How many shares are sold at IPO?

The Honest Company is offering ~6.5 million shares as part of its IPO but selling shareholders, which include directors, executive officers, and other large shareholders, are selling ~19.4 million shares in the IPO. ...

Is Honest Co stock overvalued?

Alba is a 6.1% stakeholder in Honest Co. now that it is publicly traded, according to the prospectus. At current stock prices, her stake is worth more than $118 million. Data and research company New Constructs says Honest Co. is “overvalued,” writing in a recent report that “the stock is worth no more than $7 per share.” ...

How much is the Honest Company stock worth?

At the midpoint of its May 5 IPO price range ($15.50/share), The Honest Company is valued at ~$1.4 billion and earns our Unattractive rating. We think the stock is worth no more than $7/share. A valuation at $15-$16/share implies the company’s profits will be three times greater than Revlon (REV). Looking for more investing ideas like this one? ...

Does the Honest Company have a good return on invested capital?

The Honest Company's return on invested capital (ROIC) improved from -12% in 2019 to -0.1% in 2020. The company is a niche player in a large market, holding just 1.4% market share in 2019, and currently noting its market share as 'less than 5%'. ...

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