I published a write-up on Seeking Alpha yesterday about Trupanion (TRUP). The summary is:
- Trupanion is building a durable competitive advantage in an industry that is set to grow 10x+ over the coming decades.
- The company is still run by their passionate founder who has the vast majority of his net worth in Trupanion stock.
- The current valuation looks very expensive, but starts to look reasonable the farther out you look.
Read the full write-up here: https://seekingalpha.com/article/4090526-trupanion-long-term-compounder
As of this writing, Wiedower Capital does not own shares in TRUP. This is subject to change.
Love the blog and the write up. There are some very interesting funds that own this stock. Still I just can’t get there on valuation, and if I’m paying top dollar for something I best not have to worry about things like an overly promotional management etc. But interesting nonetheless.
Thanks!
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Thanks for the comment Maltz. I have since done a more involved DCF and depending on bullish vs bearish assumptions, I think anywhere from $14 to $36 can be justified. I think it’s in the ballpark of fair value though. Many bears think Darryl is overly promotional, but I don’t get that impression. Alas, that’s what makes a market.
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