I have been looking deeply into Farfetch stock which was once a pandemic darling, and for some reason I can't wrap my head around as to why this company is so undervalued? They are almost profitable and have a solid balance sheet. I know they had to halt operations in Russia and secondly with China being in lockdown, their business have taken a decent hit.
Despite these headwinds, their Q1 earnings were awesome. The company is trading at a multiple of 2.45x. When compared to companies like Lulu Lemon trading at 39x and Aritzia trading at 27x, this stock seems way too cheap.
Can someone correct me if I am wrong or am I missing a red flag? Thanks
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