3 key figures on the Zalando share | The variegated fool Germany

It’s really positive: The Zalando-Aktie (WKN: ZAL111) has recaptured the 20 euro mark and defended it. Or whatever. In any case, the shares are currently trading at around 22 euros. To be honest, I don’t know if this is a sustainable low.

Today, however, I would like to share three key figures with you regarding the Zalando share. They basically suggest that the shares could still be a good buy. It’s best to see for yourself:

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Zalando share: 6 billion euro market value!

The market value of the Zalando stock is currently 6 billion euros. Is it a lot, is it a little? It depends on the point of view. In any case, the peak market value was around 25 billion euros, more than four times the current valuation.

Maybe let’s check out some more peers. With a market capitalization of EUR 1 billion, About You is significantly smaller. However, Etsy, for example, has a market value of 12 billion euros. Global e-commerce giants like Amazon have built stock market valuations in excess of $1 trillion. This is of course not only due to online trading, but also a very profitable growth division. Nevertheless: There is room to grow in terms of value.

Decide for yourself what stock market valuation might be appropriate for Zalando stock in the medium to long term. Or whether we already see the limit. At least I have two more key figures for you, which you should at least go into.

Turnover of around 10 billion euros

Zalando stock is also likely to report sales of around 10 billion euros this year. This would even mean a slight decrease. In the last year 2021, the value was still around 10.4 billion euros. In any case, inflation and falling consumption cloud the picture.

Nevertheless, the turnover is above the market value. Anyway, a price-to-sales ratio of around 0.6 seems pretty favorable to me. Even with a year or two of stagnation or decline, there can be a margin of safety. After all, the basic investment thesis is intact with a strong online retailer and e-commerce megatrend.

Zalando stock has a potential discount, which shows me this ratio. In addition: With an earnings per share for 2021 at around EUR 0.91, the P/E ratio would currently be around 25. That too is quite cheap. Although we probably won’t see this level of earnings for a few quarters or years.

Zalando share: growth possible

Last but not least, the management of the Zalando stock continues to share a medium to long-term growth perspective. We may be curious to see if the medium-term forecast changes again due to consumer sentiment. But in 2025, the gross volume of goods should reach 30 billion euros.

Against this background, too, the question is appropriate whether a price/sales ratio of less than 1 is not too cheap. Foolish investors might want to think realistically about what a fairer target might be. Perhaps even without the market’s currently very anxious outlook.

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Vincent owns shares in Zalando. The Motley Fool owns shares in and recommends Zalando.

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