The provided information revolves around the valuation of CommerceHub (CHUB) and its Dropshipping Business and Brands Initiative. The valuation involves various metrics such as revenue percentages, EBITDA margins, and multiples. It is noted that the valuation process includes a level of guesswork and assumptions due to limited disclosure and changes in accounting policies. The estimates suggest that CHUB has a strong growth runway and a competitive position that will be even stronger by 2020.
The valuation also considers the Brands Initiative, which is viewed as a potentially successful and valuable business. However, the actual success and value of this initiative are uncertain. Risks associated with CHUB include the overall health of retailers, customer concentration, and the potential impact of store closures on traditional retailers shifting towards e-commerce and dropshipping. Overall, the valuation suggests an upside and achievable returns, with a focus on long-term growth beyond 2020.
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