VGAC has given 23andMe a pro forma implied equity value of $4.45 billion. Meanwhile, at VGAC’s current stock price, 23andMe is valued at around $4.56 billion. After adjusting for its pro forma $984 million net cash, it would have an EV (enterprise value) of $3.58 billion. Based on this EV and 23andMe’s projected total revenue, its valuation multiples for 2021 and 2022 are 14.5x and 14.0x, respectively. The company’s 2024 EV-to-sales multiple of 9.0x looks very attractive.
23andMe competitor Natera operates as a diagnostics company. The biotech company offers preconception and prenatal genetic testing services. Natera is expected to generate revenue of $566 million in 2021, and $676 million in 2022. Considering that peers Natera and Invitae are trading at next-12-month EV-to-sales multiples of 15.6x and 11.6x, respectively, 23andMe stock looks undervalued.
View more information: https://marketrealist.com/p/23-and-me-stock-forecast-after-vgac-merger/