Fisker $FSR (NYSE:FSR) Valued at $7.8b or $26.2 per share

Fisker (NYSE:FSR) is an Electrical Vehicle company. Directed by Mr. Henrik Fisker, they are primarily focused on designing and bringing affordable autos to market quicker than traditional developers. The reason I chose Fisker is that I feel that the company’s business model is flexible enough to change with the times. Fisker initially sacrifices margins but allows for high capacity production, and it is led by the co-founders as opposed to professional managers. Valuation Report: https://thinkvalue.substack.com/p/fisker-nysefsr-valuation-report?r=qm3pq&utm_campaign=post&utm_medium=web In my view, the company will make around $26b in 2031 and will have a 6% EBIT margin, but lower than the EV market leader Tesla. The free cash flows to the firm will come significantly later in the life-cycle, around 2030 - 2031. I expect Fisker to be a value adding company with a Cost of Capital of 6.3% vs a Return on Invested Capital of 16%. The biggest risk for Fisker, will be market demand. The company can ramp-up production and include external partners, however, people have not heard of the brand, and the direct-to-consumer sales strategy may not be enough to convince them to buy. Investment timing should be ideally restricted up to Q3 2022, after which news coverage is expected to heavily increase. Investors should slowly add to their initial position if management delivers on operating income.

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Fisker $FSR (NYSE:FSR) Valued at $7.8b or $26.2 per share

bullish

Fisker (NYSE:FSR) is an Electrical Vehicle company. Directed by Mr. Henrik Fisker, they are primarily focused on designing and bringing affordable autos to market quicker than traditional developers.

The reason I chose Fisker is that I feel that the company’s business model is flexible enough to change with the times. Fisker initially sacrifices margins but allows for high capacity production, and it is led by the co-founders as opposed to professional managers.

Valuation Report:

https://thinkvalue.substack.com/p/fisker-nysefsr-valuation-report?r=qm3pq&utm_campaign=post&utm_medium=web

In my view, the company will make around $26b in 2031 and will have a 6% EBIT margin, but lower than the EV market leader Tesla.

The free cash flows to the firm will come significantly later in the life-cycle, around 2030 - 2031.

I expect Fisker to be a value adding company with a Cost of Capital of 6.3% vs a Return on Invested Capital of 16%.

The biggest risk for Fisker, will be market demand. The company can ramp-up production and include external partners, however, people have not heard of the brand, and the direct-to-consumer sales strategy may not be enough to convince them to buy.

Investment timing should be ideally restricted up to Q3 2022, after which news coverage is expected to heavily increase. Investors should slowly add to their initial position if management delivers on operating income.

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read-time
1 min

24.00

Target Price

7/ 10

Confidence

1-3 Years

Timeframe
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