Rivian Automotive is not the only fast-growing company whose multiple has shrunk. We have seen a significant redistribution of investment funds in the stock market over the last four months, with investors exiting growth names and investing in value names.
Many growth stocks, including Rivian Automotive, still have high multiples, but the EV maker's valuation has dropped so dramatically that it may now make sense to capitalize on the shakeout in the growth sector. The balance sheet is what differentiates Rivian Automotive from other EV companies. Rivian Automotive's shareholder structure includes cash-rich investors such as Amazon and Ford, which provided financial support as well as orders: Rivian has received an order from Amazon for , delivery vans for its commercial delivery fleet.
Rivian Automotive's cash reserves grew as a result of its initial public offering in No other electric-vehicle manufacturer, in my opinion, has this much cash firepower available to expand production and deliveries. Adjusted Cash Rivian Automotive. This cash balance specifically benefits Rivian Automotive by allowing the company to finance its significant investments in production scale.
Rivian Automotive will be able to scale faster than any other EV company. The company currently has a production capacity of K electric-vehicles, which includes all three major models, the R1T and R1S, which are based on the R1 platform, and the EDV , which is based on the RCV platform. Additional investments will be made in order to increase annual production capacity to K electric-vehicles by Rivian Automotive began making deliveries in the fourth quarter of last year.
The absolute number of deliveries in is negligible, at around 1K. The financial situation reflects a company that is just getting started with its business model. The advantage of parallel development is that the company will attack three electric-vehicle segments at the same time. The EDV is a commercial delivery vehicle powered by batteries that can travel up to miles on a single charge, according to internal testing using official EPA test procedures.
Most EV companies are launching electric-vehicles in consumer markets, but not in commercial markets, which presents Rivian Automotive with an undervalued growth opportunity. Rivian Automotive's focus on the commercial van segment of the electric-vehicle market could prove to be a profitable strategic gamble, as the market is much less competitive than the truck and SUV consumer segments.
Rivian Automotive is expected to ramp up production quickly in and This growth potential translates to a sales multiple of 7, which is not an unusually high sales multiple in the electric-vehicle industry. Most multiples, including Rivian's, have dropped significantly in recent months, and the sales potential implied by the multiple now looks very appealing to me.
Data by YCharts. Rivian Automotive has an excellent growth outlook, and the fact that Amazon and Ford have invested in the company strengthens the investment case even more. Co-founder of Student2Ttrader. More details.
Find out how to get your free ticket. Supplying miners with the equipment they need to repair their infrastructure is now big business. In his Value. I know of no other book in the world that discusses the concept of calculating future intrinsic values. You may think that is a bold statement, but its true. I confess to chuckling recently when one investor told me that they were finding it a little difficult to source the data they needed to calculate future intrinsic values.
They also believed that my book lacked an explanation for how to calculate future intrinsic values. So I asked whether or not they had even thought about future intrinsic values before having read Value. Sheepishly, the investor accepted that my book was much more valuable than they had initially concluded and subsequently told other people.
And for those of you who are looking for a reference to forecast equity per share in Value. Take the last known equity per share figure, add the estimated profits, subtract the estimated dividends, add any capital raised through new shares issued and subtract any equity paid back to shareholders through buybacks and you have it. Nobody in the world is presenting you with estimates for intrinsic values, two, three or four years out and I have never seen any investor ever do it.
Think about that for a minute… after reading Value. If before reading Value. Consider how you are now subconsciously framing your investing decisions with future intrinsic values in mind. I devoted an entire chapter to cash flow and its calculations. I also devoted an entire chapter to competitive advantages. They are my own filter to help narrow the universe of companies to conduct further research on.
And I am delighted that you have allowed me to share that with you. Thank you. Because I am receiving so many requests for help finding the data, I thought it useful to republish it. Click here or click the Value. I was saddened to hear that one Value. Using the information in my Source Data document, you should now be in a rock solid position to start estimating future intrinsic Value. Take a look at the Source Data document and you will see that the raw data is freely available.
With sources like Commsec and the formula I have given you for future equity, you can now freely estimate the forecast intrinsic value as well. Just go to ASX. All the information is there in the annual report. Value investing requires research and analysis. If everyone uses exactly the same inputs, our Value. Any differences therefore are due to different data.
Some examples of sources of variation are:. There are a variety of reasons and your Value. I suspect that the difference is simply the choice of discount rate. Many investors will use a low discount rate because TLS such a big company with plenty of liquidity and very low risk of significant change. Thinking about differing results, I am encouraged that many Value. It is a method of investing that requires time to demonstrate its value. And in time I look forward to hearing many more of your success stories.
Only a few First Edition hardback copies of Value. There was only one print run of the First Edition hardback. The paperback Second Edition will be available in mid November. Will the infrastructure stocks sold off in favour of QR National present any bargains? Roger Montgomery digs deep into the transport and infrastructure sector in search of a bargain. It seems that putting your feet up on a deserted island is becoming the standard accompaniment for Value.
Young Les was one of the first graduates to receive his copy of Value. Finally found that deserted island you often talk about. Some one thought it funny to take a picture of me with the pies hat. If only they had known — the real value was in the book. If only we had looked at the intrinsic value of Collingwood and St Kilda on the weekend we would have gone for the draw.
At 50 to 1 it was the only value. Author and stock analyst Roger Montgomery thinks more value is emerging among Australian stocks. In his new book, Value. Pretty soon, the QR National prospectus will hit your mailboxes. But who will represent the buyers?
What state are you in Mr Different? I'm lucky enough to live in Melbourne where there are plenty of bike trails, but I do sometimes wish I had a car as then I'd buy a MTB and go on some single track. It's one compromise I've been willing to make to avoid car ownership.
Quote from: misterhorsey on May 12, , PM. Used your advice Misterhorsey. Car I want is Nissan Pathfinder between Quote from: misterhorsey on May 13, , AM. Hi All I want to change my super to low fee industry super. Quote from: gsp on May 15, , AM. Our best car buys have been from a friend or relative with a known reliable car that is upgrading. Often they are thrilled to get more than they have been offered as trade in value, and still much cheaper than buying used from a dealer.
Have bought two cars second hand from unknown sellers too, one was fantastic 97 pulsar, recently retired and one was an absolute disaster that has cost us a lot of money. The second cost about twice as much, money paid is no guarantee. In future I will probably stick to common model, cheaper to repair cars Toyota Camry : when buying secondhand and do some prior research on known faults.
One more thing, if you are planning to take the car out of the city consider if the safety features of slightly newer cars are worth paying for. If you control those factors your own chances are much reduced. Doesn't take into account other idiots on the road. Though understanding and being cautious with others, watching your mirrors, defensive driving, etc, reduces the chances again. This narrows down good options. There are often many reasonably low km Prius that aren't too expensive.
Quote from: marty on May 24, , AM. Good point. I don't see how they're making any money there at all. Is it a play to build up market share and customers then sell the business? I'm looking for a savings account to be linked to my transaction account. I looked at ME and ING but they require you to actually use your debit card 4 or 5 times a month respectively but I actually rarely use my debit card except to take out cash from the ATM - if that.
Can anyone recommend me a good savings account where I won't lose interest for the month if I take money out of the account? Quote from: asosharp on May 27, , AM. Quote from: limeandpepper on May 25, , AM. Quote from: steveo on May 09, , PM. Quote from: mjr on May 30, , AM. Well done mjr. Privacy is paramount and confidentiality strictly enforced. Members are forbidden from sharing or reposting any ValueForum.
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