July 22, 2017

Does the hype around JUST EAT plc’s (LSE:JE) growth justify its May share price?

Just Eat new logo unveiled in September of 2016
By Just Eat (Just Eat) [CC BY-SA 4.0], via Wikimedia Commons

JUST EAT plc ( LSE:JE. ) is considered a high growth stock, but some investors are starting to doubt its last closing price of £5.565 can be still justified by the high growth potential. When questioning the value of a company’s share price, I have a few metrics I check. Let’s see how JE. stacks up against those measures. How is JE. going to perform in the future?

JUST EAT is poised for extremely high earnings growth in the near future. Based on analysts prediction earnings are to grow anywhere from 124% to 231% over the next three years which is roughly an average yearly £0.1 increase in earnings per share. JUST EAT (LSE:JE.) Past Future Earnings May 9th 17 This will project the annual earnings to levels above what has been seen in the past few years.

During the same time we will see the revenue rapidly grow from £375 Million to £775 Million in 2020 and profits (net income) are predicted to shoot up from £71 Million to £237 Million in 2020, roughly growing 3.3x. Margins are predicted to be extremely healthy during this time as well. Is JUST EAT overvalued based on current earnings?

JUST EAT is […]

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