Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 5 Oct 2026
1TY.DE· Consumer Discretionary
Prosus
Prosus N.V.'s diverse internet platforms drive a 25% revenue CAGR, but low operating margins and unclear moat raise questions.
Buffett fit
Weak fit
Owner
33
Durability
82
Management
57
Price
65
Score updated 29 Oct 2026 · analysis from 5 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Prosus N.V., we'd focus on the growth of its diverse internet platforms, particularly the 25.18% revenue CAGR.
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Prosus has been profitable for the past five years, with an EPS CAGR of 18.26%.
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The company's share count reduction of 9.86% over five years suggests a focus on shareholder returns, but the low /Net Income ratio of 0.12 indicates poor cash conversion.
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With a of 7.7 and an earnings yield of 12.94%, Prosus appears attractively priced.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 25.18% indicates strong growth potential.
- 2Net margin of 119.9% due to significant non-operating income.
- 3Interest coverage ratio of 19.3 suggests strong financial health.
- 4Debt/Equity ratio of 0.33 indicates conservative .
Concerns
5- 1 of 3.13% is well below sector top-quintile of 14.9%.
- 2 of 12.18% is below the sector top-quintile cutoff of 13.7%.
- 3Low /Net Income ratio of 0.12 indicates poor cash conversion.
- 4Heavy reliance on Tencent for net income inflates profitability metrics.
Price history
$34.37+2.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Prosus N.V. operates a range of internet platforms including classifieds, payments, food delivery, and ed-tech, generating $9.71B in revenue. Its net margin of 119.9% is inflated by non-operating income, primarily from its stake in Tencent. The unit economics are challenged by a low of 3.1%, suggesting limited .
How this analysis has moved
The call has held across 4 reviews.
Oct 11, 2026 → Oct 28, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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