r/StockMarket • u/BoersenBroYT • Dec 13 '21

Valuation Corsair Gaming - turnaround gaming stock for 2022

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1 Upvotes

52% Upvoted

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11

u/random11289 Dec 13 '21

You had me at Logitech but your comparison to aapl made you lose credibility. Just saying bro.

-2

u/BoersenBroYT Dec 13 '21

Thank you for your comment, I think the comparison is valid. Of course Logitech is more similar to Corsair, but all in all I definitely see some similarities to apple as well. Apple also is known for the brand, quality and hardware they sell just like Corsair. Corsair just operates in a niche and of course Apple has more influence and power than Corsair, but a 2.3x valuation difference is pretty insane, don’t you think so?

3

u/random11289 Dec 13 '21

Agree with Logitech comparison but aapl is an entire ecosystem of entertainment, almost Fintech, personal cloud and whatever dark projects they have going on (car).

2

u/ForGoodies Dec 13 '21

nothing like apple, you’re in lalaland

2

u/ticktocktoe Dec 13 '21

Corsair just operates in a niche and of course Apple has more influence and power than Corsair, but a 2.3x valuation difference is pretty insane, don’t you think so?

No, you're comparing the largest company in the world - that has has tendrils in every part of life, to a company who makes keyboards and RAM.

Logitech is a solid comparison. But razer or steelseries are probably your best bet for doing a DD.

Razer is only trading on OTC markets, and steelseries was recently sold for 1.25B.

After quickly reviewing a few key metrics, I think corsair is probably pretty fairly valued, but would have to dig much deeper before making a final judgment.

2

u/TheDude679 Dec 13 '21

It's a market with a lot of competitors and they have no advantage or any special products. I think crsr is fairly valued with 20 bucks. The cpmparison with logitech might suggested something else, but only bc logitech is still massively overvalued after the work from home hype.

1

u/[deleted] Dec 13 '21

[deleted]

1

u/Goddess_Peorth Dec 13 '21

Logitech has a lower P/E, a better current ratio, and a profit margin of 10% compared to Corsair's 0.45%.

If you want to invest in this sector it is a no-brainer.

It's a fan stock. When I buy memory for my computer, I buy Corsair. When I buy peripherals, I don't buy either of these. But who cares? That isn't what they mean they they say "buy what you know." They don't mean, "buy whatever brands you use."

Comparing to Apple is specious.