Toast Is Way Above Its All-Time Low

Since the beginning of 2022, Toast stock has traded in a relatively narrow range between $12 and $25. The days of its  all-time highs around $60 are far behind it. 

And, despite the tremendous decline that TOST stock suffered in the wake of the firm’s Q4 earnings report, it’s still far above its all-time low of $12.88, set last June. So the investors who bought the stock at its lows and sold it just before the earnings came out doubled their money in eight months 

The best is yet to come for the investors who are still holding onto the shares. Those who haven’t yet bitten into this appetizing stock are getting a better deal today than they would have gotten a week ago.

 TOST trades at just 3.8 times its 2022 sales and at 2.9 times its 2023 sales guidance of $3.62 billion. When Toast went public in September 2021, investors were willing to pay nearly 12 times its estimated annual sales for the stock.

So, in 18 months, its price/sales multiple has fallen by 68%, while its sales have increased by 60%. And its adjusted EBITDA margin has stayed relatively stable, moving slightly higher from -2.5% in 2021 to 4.2% in 2022.  

Covid-19 almost killed Toast. It persevered, and its business has strengthened as a result.  Aggressive investors ought to consider taking a bullish position in TOST stock.      

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

The post 3 Reasons to Buy Toast Stock (Beyond the Google Deal) appeared first on InvestorPlace.