Peloton Interactive, Inc. : valuation during a global pandemic /

This case considers approaches to valuing Peloton Interactive, Inc. (NASDAQ: PTON), a manufacturer of home fitness products including bicycles, treadmills, and connected fitness subscriptions. In this case, Bainbridge Capital, a USD 540 million assets under management (AUM) investment fund, invested...

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Bibliographic Details
Main Author:	Hutton, Ed (Author)
Format:	eBook
Language:	English
Published:	London : SAGE Publications: SAGE Business Cases Originals, 2021.
Series:	SAGE business cases
Subjects:	Exercise equipment industry > Capital investments > Case studies. COVID-19 (Disease) > Economic aspects > Case studies. Investments > Decision making > Case studies. Exercice > Appareils et matériel > Industrie > Investissements de capitaux > Études de cas. COVID-19 > Aspect économique > Études de cas. Investissements > Prise de décision > Études de cas. COVID-19 (Disease) > Economic aspects. Investments > Decision making. Electronic books. Case studies.
Online Access:	Connect to the full text of this electronic book

Description
Summary:	This case considers approaches to valuing Peloton Interactive, Inc. (NASDAQ: PTON), a manufacturer of home fitness products including bicycles, treadmills, and connected fitness subscriptions. In this case, Bainbridge Capital, a USD 540 million assets under management (AUM) investment fund, invested USD 4.3 million to acquire shares in Peloton's initial public offering in September 2019. Less than a year later, in September 2020, sales of Peloton bikes and subscriptions have risen strongly, as fitness enthusiasts are forced into working out from home. The shares of Peloton have skyrocketed, more than doubling from their initial public offering price.Lauren Truxton, an analyst at Bainbridge, is being asked to make a recommendation on whether the current valuation of the firm is sustainable, or is a temporary result of the Covid-19 shutdown that will reverse once gyms and fitness centers reopen. She needs to select an appropriate valuation methodology, considering not just the short history of the firm as a public company, but also the extreme market volatility as a result of the pandemic. Based on her analysis, Bainbridge will need to decide whether to sell their shares for a sizable capital gain or stay in the stock for the long term.
Physical Description:	1 online resource.
Bibliography:	Includes bibliographical references and index.
ISBN:	9781529764185 1529764181