Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product revenue consists of sales of bike and tread and related accessories, associated fees for delivery and installation, and extended warranty agreements. Subscription revenue consists of revenue generated from monthly Connected Fitness Subscription and Digital Subscription. The company generates the majority of the revenue from the sale of Connected Fitness Products.
Recommendation (Jan 2022)
A category creator with top-class hardware, software and content. However with a dramatic downshift in unit economics, the business seems far less sustainable.
PIE analysis shows the market is implying a 15-year growth period in today’s stock price of $25/sh.
My valuation range is between $15-48 per share.
With low forecastability, our recommendation is a No-Buy/Sell.
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