In this financial analysis report, analysts Carl Windmar and Stella Hall take a closer look at the Swedish wine company Viva Wine Group (VIVA). The analysts estimate a revenue CAGR of 13.0% in 2021A 2023E due to an expansion in the e-commerce segment. Based on a peer valuation, an EV/EBITDA target multiple of 7.0x is justified, resulting in a share price of SEK 72.7 and a potential upside of 39.8%.
Investment highlights:
- Well-positioned for future growth in the European e-commerce market, with a large cash position enabling acquisitions.
- High demand for eco-friendly wine drives future sales.
- Cost-efficient business model results in an estimated EBITDA margin of 21.8%, compared to the peer median of 13.0% in 2023E.