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How Groupon’s Valuation Compares

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Shareholder returns and stock trends

Groupon (GRPN) has generated investor returns of 1.4% in the last month and 10.4% in the last 12 months. The company’s stock has fallen 5.7% in the last five days. In the last 12 months, peers Yandex (YNDX), Baidu (BIDU), Amazon (AMZN), and PayPal (PYPL) have returned 77.4%, 30.8%, 65.5%, and 75.5%, respectively.

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Groupon’s comprehensive valuation

Groupon’s EV (enterprise value) is $1.7 billion, and its TTM (trailing-12-month) EV-to-adjusted EBITDA (enterprise value to adjusted earnings before interested, tax, depreciation, and amortization) ratio is 11.4x. Its EV-to-estimated EBITDA ratio is 6.8x and its EBITDA margin in 2017 was 5%.

Groupon’s TTM EV-to-sales ratio is 0.6x, and its EV-to-sales ratio is expected to be 0.7x in 2018. Groupon’s TTM EV-to-cash flow and TTM EV-to-free cash flow ratios are 10.9x and 17.3x, respectively.

Groupon’s debt situation

The company has a short-term debt of $26 million and a long-term debt of $208 million, putting its total debt at $234 million. Considering that it a has a total capital of $486 million, its total debt-to-total capital ratio is 48.1%.

Groupon has debt-to-equity, debt-to-assets, and debt-to-EBITDA ratios of 93.3, 0.14 and 1.5, respectively. Its interest coverage ratio is 5.9x and its debt-to-enterprise ratio is 13%.

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Analyst recommendations

Of the 16 analysts covering Groupon, five have recommended “buy,” eight have recommended “hold,” and three have recommended “sell.” Analysts’ stock price target for the company is $5.31, and their median price target for the company is $5.

Relative strength index

Groupon’s 14-day RSI (relative strength index) score is 44, whereas Yandex, Baidu, Amazon, and PayPal have RSI scores of 28, 21, 34, and 37, respectively.

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