Here’s why
$BYND is heavily undervalued.
It has $270 million in cash ($0.60/share)
$170 million in inventory and accounts receivable ($0.38/share)
$310 million in property and equipment ($0.69/share)
- $65 million in liabilities ($0.15/share)
= $1.52/share in assets.
With the convertible note converting at $1.74/share that is a 24.8% dilution to shareholders to get rid of all of the convertible debt.
= $1.14 per share in hard assets with no convertible debt.
Now, on top of that add the value of Beyond Meat’s 24 global patents on food products with meat-like texture from non-animal proteins, it’s brand value, distribution channels and sub $300 million per year revenue business.
To build these out,
$BYND has spent nearly $1.5 billion ($3.4 per share).
Even if you mark these down by half, you’re still left with a $1.7 per share valuation for these assets.
Which gives you a conservative valuation of
$BYND of $2.84 per share, as was previously stated.
Question is how could anyone justify that $1.03/share price when liquidation value is 50% higher.