On Wednesday, Groupon Inc. disclosed that it had a 2.4 percent ownership in SumUp. This asset is a hidden asset in the balance sheet of the company, adding value. The current share value of a Groupon stock is roughly in the $23 range. Most analysts have valued the company at its current stock level. However, Prescience Point had always considered it to have a higher share value. After Wednesday’s disclosure of Groupon’s stake in SumUp, Prescience Point said that a share of Groupon had a fundamental value between $70 to $100 per share.
Recent news of SumUp’s pending funding round indicates that the stake of Groupon in the company is worth approximately $15 a share. This is more than 50 percent of Groupon’s market capitalization. As the bullish trend on SumUp continues, the value of the company’s stake in SumUp will also increase. Bloomberg had reported that SumUp is looking to raise capital to reach a value of $22.5 billion, in a report late January.
This is the reason why Prescience Point Capital Management predicts that Groupon share value should be in the $70-$100 range, after Groupon confirmed its stake in SumUpon, on a bullish trend. This is an estimation and not financial advice.
Groupon’s public disclosure of its stake is positive news. It could be a catalyst to drive up the share price of Groupon. Many analysts had not estimated a bullish trend for the company. Prescience Point has been emphasizing the company’s value due to its hidden asset from several weeks.
Groupon features deals: everyday deals, trending deals, featured deals, popular deals, new deals, region based deals and more in various categories including food and drink, beauty, experiences, gifts and more. Earnings and growth had seen a downward trend due to the lockdowns as a result of the pandemic. However, as everything has been opening up, the company is seeing green shoots and hopes to reach pre pandemic levels of growth; later if not sooner.