October 5, 2018

Valens Research Weekly Equity Idea Highlight for October 3, 2018 – Planet Fitness, Inc.


This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis.

Market’s lack of respect for the upside of PLNT’s franchising strategy, strong management execution, and overstated credit concerns for the business point to substantial equity upside

PLNT has been focused on an asset-light franchising model that is likely to drive substantial UAFRS-based (Uniform) ROA expansion over the coming years, but based on the company’s low valuations, the market does not appear to recognize this. PLNT trades at a significant discount to any other companies in the consumer space that are currently undergoing a similar franchise growth strategy, pointing to the market’s pessimism.

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