Market Valuation: $215 Billion
Ironbound Buy-Side Valuation: $205 Billion
Ironbound Assessment: Seattle Washington based Costco, founded in 1983, is an American multinational corporation that operates membership-only retail warehouses and e-commerce websites. Our upside valuation is $300 Billion or 1.5-times the $200 Billion in average sales reported between 2020 and 2022. We believe Costco’s true competitive advantage is rooted in their code of ethics: management must “Take Care of Our Employees” so that employees reciprocate and “Take Care of Our Members.” Combining this simple rule with their effective strategy of only selling high-quality merchandise at the lowest possible price, has made Costco the most productive in the retail industry. Their superb and efficient service has created some of the most loyal customers, churning year-over-year double-digit sales growth. As a result, Costco is forecasted to reach $1 Trillion in sales by their 50th birthday in 2033.
Market Valuation: $14 Billion
Ironbound Buy-Side Valuation: $22 Billion
Ironbound Assessment: Ireland based Horizon Therapeutics Public Limited Company, founded in 2005, is a leading high-growth biotech company focused on innovative medicines for rare autoimmune severe inflammatory diseases. Our upside buyout valuation is $22 Billion or 20-times the average sales reportedbetween 2019-2021 and continued double digit sales growth for the foreseeable future. At this valuation, roughly 70% of the acquisition value is Goodwill for the rights to develop and produce TEPEZZA®, their blockbuster thyroid eye disease (TED) medicine. TED is about four-times more prevalent in women than men, affecting roughly 24,000 women in the United States. TEPEZZA® promises a phenomenal growth opportunity; upon FDA approval in 2020 initial sales jumped over 100% from $820 Billion to over $1.6 Billion and accounted for over half of sales in 2021. The $28.3 Billion acquisition by Amgen will further expand thier portfolio of breakaway potential drugs and immediately increase future sales projections by an additional 10% annually – pushing its own $140 Billion valuation even higher.
Market Valuation: $1 Trillion
Ironbound Buy-Side Valuation: $800 Billion
Ironbound Assessment: Seattle based Amzon.com Inc., founded in 1994, is an American multinational e-commerce technology company. Our upside valuation is $3 Trillion or 10-times the $300 Billion in average sales between 2019 and 2021. We like Amazon and believe the secret to the stock’s success is clearly defined in the first line of their 10K SEC filings: “We seek to be Earth’s most customer-centric company.” Followed immediately by their four guiding principles: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.” Companies with that level of focus guarantee stakeholders’ long-term success. Unlike comparable e-commerce retailers, Amazon Web Services (AWS) generates the biggest untapped blue ocean opportunity. In 2021 e-commerce reported 47% of sales, $222 Billion, all the while AWS accounted for over half of the consolidated $33 Billion in profits from only $62 Billion in AWS sales. Overall revenue is forecasted to more than triple and surpass $1 trillion within the next five years.
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