Market Valuation: $250 Billion
Ironbound Buy-Side Valuation: $440 Billion
Ironbound Assessment: California based Meta Inc., formerly named Facebook founded in 2004, is a multinational Social Media conglomerate focused on technologies that help people connect, find communities, and grow businesses. Meta wants all their products to share a vision of bringing the metaverse to life. Our upside valuation is $1 Trillion based on $100 Billion in sales for 2021 and continued sales growth exceeding 10% over the next few years. This is a reasonable expectation considering the company reported in 2021, Daily-active-users (DAU) just shy of 2 billion, nearly a third of the world’s population. The company has a strong societal mission, giving people the power to build communities and bring the world closer together, which will help the company continue to attract and retain top talent. Severely depressing the potential upside is the founder’s voting control, currently used to direct over $10 Billion a year to finance the buildout of a highly uncertain Metaverse. On the other hand, the limited control is helping prevent a sovereign wealth fund or group from acquiring the company for $440 Billion, or 13-times the average operating income between 2021 and 2019. At this price, the buyer(s) would acquire $100 Billion in assets and pay about 10¢ per DAU per day for 5 years, comparable to the Twitter acquisition, in Goodwill.
BBBY is worth less than $1
Market Valuation: $700 Million
Ironbound Buy-Side Valuation: $99 Million
Ironbound Assessment: New Jersey Based Bed Bath & Beyond, founded in 1971, is an American retailer that sells an assortment of merchandise in the Home, Baby, Beauty & Wellness markets. Our buyout valuation is $1.5 Billion that would account for the cash balance, property, and some additional goodwill. Unfortunately, the company faces major headwinds to profitability despite generating nearly $10 Billion in sales from numerous high quality retail locations and digital on-demand transformation strategies. Several problems at the Company can be rooted in a culture steeped in financial mismanagement. At the end of 2021, the company reported having only $440 million in cash on the balance sheet, of which most could be wiped-out to cover $320 million in current merchandise credits and gift card liabilities. The company faces shareholder lawsuits for false or misleading financial statements and also lawsuits for unjust enrichment using corporate assets to repurchase shares. Certain executive officers were awarded stock options with strike prices of $6, while employees were offered strikes ranging from $17 to $32. With a book value of only $175 million, our position is to stay away from this company until the stock drops below $1 per share to profit from a short squeeze.
Is Twitter Worth $44 Billion
Image: Business Insider
Market Valuation: $30 Billion
Ironbound Buy-Side Valuation: $20 Billion
Ironbound Assessment: San Francisco based Twitter, founded in 2006, is a global social networking platform for real-time public self-expression. Our upside valuation is between $50 and $75 Billion, based on the $5 Billion in sales for 2021 and projected $7.5 Billion target for 2022. Twitter has numerous lucrative opportunities given their globally entrenched politically influential capabilities. However, headwinds holding down the valuation are risks with achieving double-digit sales growth. Long-term growth is rooted in cohesion between stakeholders, which management usually expresses through a commitment in core values – a company’s guiding north star. Without cohesion, both meaning and purpose can easily be lost. In Twitter's most recent 10-k financial filings, clearly expressed core values were missing. In addition, Twitter continues to lag behind the business trend in establishing carbon neutral goals. A board room wakeup call is needed, until then our position is to wait for the stock to drop below $25 a share before considering engagement.
*In 2019, IBM was awarded over 4,500 patents related to AI and quantum computing
** In 2021, celebrated over 105 years of uninterrupted dividends with 25 consecutive years of increases
* Both Ford and ADT plan to invest $100 Million into Canopy in the next three years, and open a funding round to bring in more automotive partners. Canopy is currently integrating machine learning algorithms to be able to send an alert if a person loiters near a vehicle, but not send an alert if a cat is at the vehicle.
** An average work vehicle carries $50,000 in gear. Each year motor vehicle related theft affects 230 per 100,000 vehicles, only half are due to owner error.
How to Become the Most Innovative, Customer Centric, Inclusive, and Sustainable Company in the World
* Net Sales of $55 Billion in 2021, up 41% and 28% from 2020 and 2019.
** For 17 consecutive years Dow Inc has received a perfect score in the Human Rights Campaign (HRC) Corporate Equality Index. In 2021, they ranked on Fortune 100 Best Companies to Work For® list and ranked #19 in the Diversity Inc Top 50 Companies.
*** Received the 2021 BIG Innovation Awards from the Business Intelligence Group
* Caterpillar also created a hybrid-hydrogen generator for customers who are geographically isolated and unable to consistently refill their generators with renewable hydrogen.
** Caterpillar posted $50.9B in revenue in 2021, from $41.7B in 2020, and doubled their net income from $3B to $6.5B in the last FY.
Brand Growth from Fun Co-Branding
* In the last 5 Years, John Deere’s stock has risen from $122 to $436 with a current 1% dividend yield ($134B Market Cap).
** In the last 5 Years, AB InBev’s stock has slipped from $116 to $58 with a current 2% dividend yield ($118B Market Cap).
* Apple’s annual revenue increased from $260.2 Billion in 2019, to $274.5 Billion in 2020, to $365.8 Billion in 2021.
Brand Growth from Helping Startups
* Half of Honeywell’s R&D investment is directed towards positive social and environmental outcomes. In the last FY, Honeywell’s expenditure on R&D was $1.3 Billion.
** Last FY, Honeywell posted $34.4B in sales, with $5.6B net income.
*** Honeywell’s building solutions sales have flatlined around $2.3B after it spun-off its nearly $4B Homes and Global Distribution segment in 2018/2019.
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