DASH - Embedded Expectations Analysis - 2021 06 22
DoorDash, Inc. (DASH:USA) currently trades at a significant premium relative to UAFRS-based (Uniform) assets, with a 58.1x Uniform P/B. At these levels, the market is pricing in expectations for profitability to positively inflect, but management may have concerns about customer order growth, organic investments, and restaurant reopeningsSpecifically, management may lack confidence in their ability to improve restaurant and non-restaurant order growth and frequency, provide tools for merchants to grow their digital businesses, and secure organic investments to build an international presence. Moreover, they may have concerns about the breadth of diversification opportunities, the sustainability of consumer delivery demand, and the impact of store reopening on consumer behavior. Furthermore, management may lack confidence in their ability to enhance their platform, invest in new delivery verticals, and maximize their scale. Finally, they may lack confidence in their ability to meet gross order value(GOV) guidance, provide flexible employee benefits to drivers, and effectively roll out commission caps
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