MNTN, Inc. (NYSE:MNTN) is one of the stocks that Jim Cramer shed light on. During the episode, Cramer discussed the stock in detail as he said:
“… Where do I come down on this one? It’s… really tricky to value a stock like this because the company’s not yet profitable. We can’t even use an EBITDA multiple because the number isn’t high enough to tell us anything useful. That means if we want to take a stab at this one, we need to use an enterprise value to sales ratio… Then we need to compare Mountain to ad-tech companies that work in a similar space, this is how you do comps, the Trade Desk, and a company called Magnite.
When we look at the numbers, Mountain seems to have a pretty reasonable valuation with an enterprise value to sales ratio of about 5.6, that’s slightly more expensive than Magnite, the company that I’m just kind of okay on, but not even half as pricey as the Trade Desk, which has an enterprise value to sales multiple of 12.3. Now, regular viewers know that I am a big fan of the Trade Desk, but you know what, Mountain has faster growth by a pretty wide margin. That’s why I think the stock looks pretty attractive at these levels. It trades a little less like Magnite and a little more like the Trade Desk. That could represent some substantial gains. Yes, I’m blessing this one.
Here’s the bottom line: Mountain caught my attention when it came public in May, and after taking a close look at the story, I think this is a good way to play the ad-tech space, especially now that the stock has pulled back pretty dramatically from its post IPO highs. Obviously, this one’s still early. I tell you, I want to use it for some of the businesses I’m in. We’ll know more as they start to report earnings as a publicly traded company. But for now, I like what I see, a very compelling story.”
A professional investor in a bespoke suit calmly analysing a stock exchange chart.
MNTN (NYSE:MNTN) is a performance TV advertising company that helps marketers target audiences and link ad views to actions like purchases. The company’s platform includes tools for audience segmentation, campaign planning, creative development, and data analysis.
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Disclosure: None. This article is originally published at Insider Monkey.
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