Wayfair Is Down 60% From Highs -- Time to Buy?

Shares of Wayfair (NYSE: W) are down over 60% after reaching an all-time high of $355.96 in March 2021. Revenue fell 3% last year, coming off a spike in demand in 2020. The deceleration in growth caused the stock to spiral downward as investors reset their growth expectations.

While revenue fell again in the fourth quarter, the stock is up 10% since the release of the fourth-quarter report. Is Wayfair a good investment at these price levels?

Relative to its annual revenue, the stock is as cheap as it's ever been since Wayfair's initial public offering in 2014. Revenue grew 35% in 2019 but then accelerated to a rate of 55% in 2020. During the pandemic boom, the market sent the stock soaring to a price-to-sales (P/S) ratio of nearly 3.0 as investors extrapolated the elevated growth further out in the future. But after the sell-off, shares now trade at a P/S multiple of 1.1, which is at the low end of its past trading range.

Source Fool.com