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.
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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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