Down 83%, Is Wayfair Stock Undervalued?

Wayfair's (NYSE: W) share price has tumbled 83% in a little over a year. After soaring to an all-time high of $369 in Jan. 2021 on the back of accelerating growth during the pandemic, the stock currently sits at about $64. 

Wall Street is worried about the company's deteriorating growth in recent months. In the first quarter, it reported a revenue decline of 14% year over year. But I wouldn't want to bet against the long-term growth of e-commerce, especially for the leading online home goods brand.

Wayfair's 2021 revenue amounted to just under $14 billion, but the value of the home goods market is estimated to reach $1.2 trillion by 2030. The upside could be huge for a stock this cheap. Shares currently trade at a price-to-sales (P/S) ratio of less than 0.5, which is even lower than slow-growing Walmart's multiple of 0.6.

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Source Fool.com