Tiruchelvam says that GoTo — which provides 100 million users with e-commerce, ride-sharing and fintech, with 2.5 million drivers on its ride-hailing platform in Asean and 12 million merchants on its e-commerce network — has been priced 69% higher than Grab's valuation in terms of enterprise value-to-sales (EV/Sales).
Alētheia Capital equities analyst Nirgunan Tiruchelvam has initiated the investment firm’s coverage on GoTo with a recommendation of “sell” and a target price of IDR80 (0.69 cents), calling the company a “cash-burning machine”.
In his report, Alētheia’s head of consumer and internet writes that Jakarta-listed Goto, formed from the 2021 merger between Gojek and Tokopedia, is about six quarters away from a cash crunch. GoTo has lost more than half its initial public offering (IPO) value since it listed on the Jakarta Stock Exchange in March.
