You’ve covered most of the main points. Two things I’d like to highlight:
1. In their most recent quarter, $PINS reported a one-off deferred tax benefit which spiked their net income. When you adjust this out, their trailing P/E is closer to 90.
2. SCB makes up 83% of FCF. If you’re going to use FCF to value the stock, SCB should be adjusted out. It’s increasing every year too.
You’ve covered most of the main points. Two things I’d like to highlight:
1. In their most recent quarter, $PINS reported a one-off deferred tax benefit which spiked their net income. When you adjust this out, their trailing P/E is closer to 90.
2. SCB makes up 83% of FCF. If you’re going to use FCF to value the stock, SCB should be adjusted out. It’s increasing every year too.