Ask HN: Why is SodaStream (NASDAQ: SODA) so highly valued at $3.2B?

2 points·vkdelta··5 comments

separately from any argument along the lines of fundamental value, there's at least one punter (pepsi co) willing to pay at least that much for it

https://www.forbes.com/sites/petercohan/2018/08/20/4-reasons...

edit:

really naively, looking at stock metrics without any knowledge of what a sodastream business is and how a sodastream business might perform in the future, the stock looks very expensive now compared to historical earnings or current book value ( CAPE > 100 (?!), price / tangible book value > 5 ). Then again, it would have looked really expensive to me a couple of months ago before the stock price shot up -- i assume that was a reaction to news that pepsi co was going to acquire it, or at least seriously thinking about an acquisition.

Captive market of daily use, sugar-addicted owners of patented devices with high sunk cost which get their high margin (high profit) consumables from a single business entity?

As fun as it is to feel superior to the "sugar-addicted", most people I know just use these things to make soda water without sweetener.

That is cool! Now you have me looking into these devices.

Because the US has been printing money for over a decade with a deficitary budget and no prices make any more sense at all.

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