In the wake of a staggering 90% decline from its 2021 peak, Bumble’s (NASDAQ:BMBL) stock has plummeted to unprecedented lows, now trading at a mere 7.4 times its trailing free cash flow (FCF). If we strip away the impact of stock-based compensation on FCF over the past 12 months, this valuation drops to a paltry 10.7 times. As a result, Bumble has transformed into a deep value play, offering investors a rare opportunity to snag a promising company at a bargain-basement price.
Note: The author holds a long position in BMBL and has written this article solely to express their personal opinions. No compensation has been received for this piece, aside from that provided by Seeking Alpha. The author has no business ties to any companies mentioned in this article.
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