Webvan Group (WBVN) Message Board

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Technology Stocks : Webvan Group (WBVN)

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To: CMon who wrote (187)	6/22/2000 4:35:00 PM
From: mmeggs	Read Replies (1) of 464

In the end it all depends on how far you see the execution going. What exactly constitutes success? One simple way of looking at it: At max capacity, each DC can supposedly do about $300 million in revs. 26 DC's planned initially over the next 2 1/2 years or so. $7.8 billion. (Notably a very very small fraction of the markets being addressed) Assume they can do 12% margins. (Currently much higher.) About a $1 billion or $3 EPS. What kind of multiple? I dunno. 15x? 20x? 10x? $45. $60. $30. In any case, way above where we're at here. You might think the current price is a fair discount for execution issues, (I don't) but I think it's a stretch for you to say all upside is in the stock. mmeggs

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