Sign of the bubble #15 (I have lost count): DASH nearly worth one SHW

DASH is worth $62B (sales $2B, income -$280M) and was up 14% today as I was short.

What can you buy for $62B?

Zurich Insurance, Deutsche Post, Intercontinental Exchange (sales $6B, income $2B), Ronseft, Norfolk Southern (sales $9.8B, income $2B), Brookfield Asset Management (sales $63B, income -$75M), Vmware (sales $12B, income $1.6B), London Stock Exchange, Dell ($92B, income $2.4B), ABB ($26B, income $300M), or Foxconn are all within budget or close.

You can almost buy: Mitsubishi UFJ Financial (sales $27B, income $5B), Bayer, Allergan, Spotify (sales $9B, income -$700M), Conoco Phillips (sales $18B, income -$2.7B), Sherwin-Williams (sales $18B, income $2B), with a few billion more.

Biogen at $41B seems like a steal with sales of $13B and income of $4B and a profit margin of 30% (instead of -12% for DASH). I find it hilarious that the profit of BIIB is nearly two times greater than the sales for DASH despite being $20B cheaper.

I realise Softbank owns this and cited DASH as one of the reasons for their strong quarter. Then again, Softbank was responsible for WeWorks. Not only are there many competitors for DASH, but new ones are encroaching with the specific goal of reducing or eliminating delivery fees. It is difficult to see why a restaurant would not switch (or why customers would not simply pick the cheapest option). That GRUB was not able to make money in the most pandemic boosted sales quarter in their imagination points to the weakness of the business model (if you can call it that).

As a side note, it must be sad being GRUB, with sales at $1.8B, quite close to DASH sales of $2.2B, and losses of $155M, compared to DASH at -$283M. Despite the relatively close performance GRUB is valued at $6.5B instead of $62B.

soon to be eclipsed by DASH?

In this market are we going to see the non-moat “business” of DASH exceeding the value of the amazing business of Sherwin-Williams? We are very, very close, which is astounding.