Risk factor
Poor trading liquidity
Profitability factor
Strong margins and returns
About
Rocket Internet SE functions as an incubator, private equity, and venture capital firm, dedicating its resources to fostering and funding companies across all growth phases, from initial incubation and early-stage development to providing growth capital, late venture, and later-stage support for startups. The firm strategically invests in internet-centric businesses, with a particular emphasis on online and mobile retail services. Its investment mandate encompasses a broad spectrum of technology and internet-based enterprises. Key sectors of interest include financial technology (FinTech), software development, and the food and grocery sector, which covers everything from personalized fresh food delivery to online meal services. They also target fashion (especially online fashion in emerging markets), general merchandise (including online retail and marketplaces in emerging economies), international e-commerce for home and living products, and the travel industry (spanning online and mobile booking platforms, mobile data services, and complete package holidays). Additionally, Rocket Internet backs regional internet groups and explores new business opportunities and investments. Geographically, the firm's primary target regions are Europe, Africa and the Middle East, Russia and the CIS, Asia and Pacific (excluding China), and Latin America. Established in 2007 as Rocket Internet AG, Rocket Internet SE is headquartered in Berlin, Germany, and maintains a substantial international footprint with offices throughout Africa, Asia, Europe, North America, and South America.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is undervalued on EV/EBITDA, overpriced on P/FC.