Why Trupanion Could Be A Long-Term Compounder

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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2 thoughts on “Why Trupanion Could Be A Long-Term Compounder

  1. 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!

    Like

    • 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.

      Like

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