Seriously considering Boohoo now

This one has grabbed my attention.

Ive held off on buying Boo for some times. They’ve face some issues this year but have kept an eye on them. Im glad I didnt buy earlier in the year.

However, the price decrease has got to come to an end at some point. After hitting 98 today i think it has. From what I can see their balance sheet is healthy with good profit margins. Have always considered to be it an expensive stock personally, but im not so sure now.

Debt levels are comfortable for me too. Profit margins are lower, but is that expected with a growth company which will eventually stabilise at some point while it finds it feet? Supply chain issues and covid variants may well pose short term issues, they key words for me here being short term.

Am I looking at a company which could potentially see a 400% increase in time? Ok, bit optimistic. Barclays recently downgraded to 195.00 initially after 430.00 and deutchse to 230.000. Still, am seriously considering this one for the portfolio. I see the growth potential as huge. Feel like I’d need balls of steel though.

Warren Buffett comes to mind with this one: ‘be fearful when others are greedy and greedy when others are fearful’. What do you reckon?

The earnings forecasts don’t excite me too much, and with all the noise in the business it isn’t one I’d be willing to gamble on.

For someone closer to it, if they believe in it enough to ride out the noise, they may come to a different conclusion. Not exactly my field of expertise though, and as they say in Dragon’s Den…for that reason, I’m out.


I have recently completed a DCF model for Boohoo.

The base case scenario shows an intrinsic value per share of 97p.
This is with projected growth of 3%, 15%, 13%, 3% & 11% - slightly below the average & median analysts’ projections.

You can see the full details in the post below, including a review of the financial statements, bear and bull case scenario and IRR calculations:

I would be interested to hear your thoughts and if anyone else has recently completed a DCF model for Boohoo.

NOTE: Not investment advice - Sharing personal analysis based on personal assumptions.

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I’m tempted to look into this on the basis of testing my knowledge. I would probably want to bring in analysis of competitors as well, so ASOS maybe?

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