Will DASH's 2025 EPS justify its valuation?

**Doordash's 2025 EPS is expected to be $1.26, which may not fully justify its current valuation.** Here's why:

1. **Current Price Target and Valuation Metrics**: The average current price target for Doordash is $214.6, which is significantly higher than the projected EPS of $1.26 for 2025. This suggests that the market is currently valuing the company based on factors other than just its EPS.

2. **Market Valuation Concerns**: The company's forward Price/Sales ratio is trading at 5.94, which is higher than its median of 5.12 and the industry’s 4.75. This indicates that the market may be willing to pay a premium for Doordash's growth prospects, which could be a factor in the stock's valuation.
3. **Growth Prospects and Recent Performance**:
- Doordash has seen strong order growth, with a 19% year-over-year increase in orders in Q4 2024, reaching a total of 685 million orders.
- The marketplace GOV grew by 21%, totaling $21.3 billion.
- The company has expanded its partner base, which has enhanced its order volume and service offerings.
- BMO Capital Markets has increased its price target to $240, citing better-than-expected user engagement and strong international growth.
4. **Financial Position and Future Estimates**: Doordash has a current ratio of 1.65, indicating strong liquidity. Analysts have raised their EBITDA estimates for 2025 and 2026, with 2025 EBITDA expected to be $2.62 billion.

In conclusion, while Doordash's 2025 EPS may not fully justify its current valuation based on the projected EPS, the company's strong growth prospects, expanded partner base, and strong financial position could support the market's valuation. Investors should consider these factors along with their own risk tolerance and investment goals when evaluating Doordash stock.