$ETSY bought Depop at a premium of 20x revenue. Is $POSH and $TDUP undervalued?

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Comparison by P/S is pointless without stating their growth rates and having a good idea of their TAM / room for growth. So you should add that to your analysis. Take the revenue growth rates and project them out 5 years, then check the 5 year forward P/S. That will give you a better idea on whether these multiples are reasonable.


Are they comparable? It looks like depop is a marketplace that takes a commission on transactions. Thread-up actually buys and sells clothing, hence much of that revenue is passthrough. I’d have to look closer, but I’d imagine it has to do with the business models. $1 of revenue earned from clothes bought for $.70 is much less valuable than $1 revenue earned from transaction fees on a marketplace.


I can speak as a regular Depop user and seller- I make WAY more on Depop than any other secondhand platform- the algorithms are really aggressive towards fashionable stuff. A lot of young people favor the app strongly to other resale sites like ThreadUp and Poshmark, which attract an older crowd. Depop is sort of known as a tastemaker app and teenagers are literally gettin rich off of it.


Why are you assuming that Depop’s competitors are undervalued rather than the fact that $ETSY paid way too much to acquire them? Or why an acquisition premium would translate to a competitors trading multiple?


Been bagholding TDUP, kept averaging down, now it’s in the green. I’ve never used any of these 3, but through the grapevine had heard that Gen Z-ers love TDUP. Considering they are smallest of these online consignment resellers, that was enough for me to go with them.