https://twitter.com/i/spaces/1kvJpoeRzBmGE … @BillAckman @enriqueabeyta @celarier_m hoping we can talk about the events of the week.
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US bedding market projected to be about 114bn in 2025 (statista).
$PRPL takes 2% share (vs 1% today). 13% EBITDA margin, 15x ev/ebidta multiple, 10% discount rate gets you to 40/sh. Over 50% upside. Pretty conservative math here.
I imagine purple takes closer to 10% in us market - in Utah mattress firms it’s well above 10%. Not sure where it’s at nationally but I assume it’s around 10% in the stores it sits in.
