Key Factors to Evaluate Before Investing in DoorDash (DASH)

One of the losers of today's trading session was DoorDash. Shares of the Farm & heavy construction machinery company plunged -2.6%, and some investors may be wondering if its price of $126.67 would make a good entry point. Here's what you should know if you are considering this investment:

  • DoorDash has moved 112.3% over the last year, and the S&P 500 logged a change of 21.2%

  • DASH has an average analyst rating of buy and is -6.43% away from its mean target price of $135.37 per share

  • Its trailing earnings per share (EPS) is $-1.42

  • DoorDash has a trailing 12 month Price to Earnings (P/E) ratio of -89.2 while the S&P 500 average is 15.97

  • Its forward earnings per share (EPS) is $1.36 and its forward P/E ratio is 93.1

  • The company has a Price to Book (P/B) ratio of 7.5 in contrast to the S&P 500's average ratio of 2.95

  • DoorDash is part of the Industrials sector, which has an average P/E ratio of 22.19 and an average P/B of 4.06

  • The company has a free cash flow of $1.45 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.