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  • May 2020 (Revised October 2021)
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Valuing Peloton

By: E. Scott Mayfield
  • Format:Print
  • | Language:English
  • | Pages:12
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Abstract

Peloton Interactive, a well-known venture-capital-backed unicorn in the connected fitness space, recently had gone public with a market capitalization of over $8.0 billion. However, in the weeks following its public debut, Peloton’s stock price had fallen by over 25%. Taylor Knox, an enthusiastic Peloton subscriber, believed that connected fitness products were the future of exercise and he had been excited about the prospect of investing in Peloton. However, given the market’s reaction to the company’s IPO, Knox understood the need to determine the fundamental value of Peloton’s shares, as well as to identify and to evaluate the key risks associated with its innovative business model. Reflecting on the situation, Knox wondered if this was an opportunity to invest in his favorite activity at a discount. Or, did market investors understand something he didn’t?

Keywords

Business Model; Public Equity; Initial Public Offering; Disruptive Innovation; Business Strategy; Valuation; Entertainment and Recreation Industry; United States

Citation

Mayfield, E. Scott. "Valuing Peloton." Harvard Business School Case 220-060, May 2020. (Revised October 2021.)
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About The Author

E. Scott Mayfield

Finance
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Related Work

    • May 2020 (Revised November 2021)
    • Faculty Research

    Valuing Peloton

    By: E. Scott Mayfield
    • May 2020 (Revised October 2021)
    • Faculty Research

    Valuing Peloton

    By: E. Scott Mayfield
Related Work
  • Valuing Peloton By: E. Scott Mayfield
  • Valuing Peloton By: E. Scott Mayfield
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