Can ACV Auctions (ACVA) Justify $10.50 A Share On Sales?

ACV Auctions has seen its share price pulled sharply higher by a US$1.9b all cash takeover agreement, which now puts a firm US$10.50 per share marker on the story. With that offer on the table, the live question for investors is whether this price can be squared with what the business is generating in sales today. Over the past 5 years the stock has declined 46.0%, which makes the current buyout level an important test of what the underlying revenue stream is worth. Copart’s plan to fold...