Ask HN: Why is SodaStream (NASDAQ: SODA) so highly valued at $3.2B? - vkdelta
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shoo
separately from any argument along the lines of fundamental value, there's at
least one punter (pepsi co) willing to pay at least that much for it

[https://www.forbes.com/sites/petercohan/2018/08/20/4-reasons...](https://www.forbes.com/sites/petercohan/2018/08/20/4-reasons-
to-love-pepsicos-3-2b-sodastream-buy/#778bffd82249)

edit:

really naively, looking at stock metrics without any knowledge of what a
sodastream business is and how a sodastream business might perform in the
future, the stock looks very expensive now compared to historical earnings or
current book value ( CAPE > 100 (?!), price / tangible book value > 5 ). Then
again, it would have looked really expensive to me a couple of months ago
before the stock price shot up -- i assume that was a reaction to news that
pepsi co was going to acquire it, or at least seriously thinking about an
acquisition.

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natch
Captive market of daily use, sugar-addicted owners of patented devices with
high sunk cost which get their high margin (high profit) consumables from a
single business entity?

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paulcole
As fun as it is to feel superior to the "sugar-addicted", most people I know
just use these things to make soda water without sweetener.

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natch
That is cool! Now you have me looking into these devices.

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thiago_fm
Because the US has been printing money for over a decade with a deficitary
budget and no prices make any more sense at all.

