David Einhorn’s Greenlight Capital had a $6.8 million stake in Peloton as of June 30, and he thinks the company could be worth five times its current…
David Einhorn's Greenlight Capital has a $6.8 million stake in Peloton, and he thinks the company could be worth five times it current value, if it cuts more costs.
at the Robin Hood Investors Conference on Wednesday, Einhorn pedaled on a Peloton bike as he explained the company's many missteps over the years and the wide runway it has to turn its business around, according to a copy of the presentation obtained by CNBC. "Facing bankruptcy can force change," he said during the pitch."Peloton has started to right-size and cash burn has stopped. Itto push out maturities. And with a loyal customer base that pays $44 per month, it's a valuable subscription business."
The study found that even though Peloton has already cut costs to curb its cash burn, it's seeing"basically zero adjusted EBITDA versus the peer median of $406 million," Einhorn stated in the pitch. Companies that generate that range of EBITDA tend to trade at 9 to 32 times that amount, implying a potential Peloton share price of between $7.50 on the low end and $31.50 on the high end, if it reaches $450 million in EBITDA, he said.
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