We take apart Anthropic's 416-page IPO prospectus with Damodaran's valuation: revenue up 1,400%, but $473B in compute commitments that work like debt, a BB+ rating and a five-class share structure. His optimistic base case puts intrinsic value at about $1.48T, while expected IPO pricing of $1.5T to $2T leaves no margin of safety.
Chapters
(0:00) Anthropic's IPO: A Deep Value X-Ray
(0:46) Great Technology Isn't Great Investment
(2:05) Business Model and Competitive Position
(2:52) Revenue: The Boom and the Brakes
(5:52) Profitability: The Operating Leverage Trap
(6:53) The Intrinsic Value Engine
(7:34) Profitability: The Operating Leverage Trap
(8:12) Capital Allocation and Hidden Debt
(9:35) Three Existential Risks
(11:18) The Governance Dealbreaker
(14:36) The Intrinsic Value Engine
(14:56) Business Model and Competitive Position
(15:17) The Intrinsic Value Engine
(15:37) Valuation and Margin of Safety
(16:15) Bull vs Bear Scenarios
(16:55) The Verdict for Long-Term Investors
(18:34) Apps for Intelligent Value Investors
(19:00) Get the free apps
Full open-source research report: https://research.deepvalues.ai/insights/2026-10-28-anthropic-ipo-valuation-and-prospectus-analysis/?utm_source=spotify&utm_medium=description&utm_campaign=company&utm_content=why_anthropic_s_ipo_is_overvalued
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