Toast, Inc.

TOSTdata completeness 88%7 fiscal years on file
The thesis, from the filings

Toast, Inc. earns about -28% on invested capital, below its ~9% cost of capital, but has diluted owners by 109% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $11.18 and $11.93 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.71B1$2.73B2$3.87B3$4.96B3$6.15B3
Net income−$487M4−$275M5−$246M6$19M6$342M6
Operating cash flow$2M7−$156M8$135M9$360M9$661M9
Capital expenditure$12M10$16M10$42M11$54M11$53M11
Free cash flow (derived)−$10M7−$172M8$93M9$306M9$608M9
Total debt$012
Cash & equivalents$809M13$547M14$605M15$903M15$1.35B15
Diluted shares290.0M512.0M533.0M591.0M607.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$34.99
your share of equity
Profit it earned you last year
$5.63
Free cash flow it threw off
$10.02
Debt you’d be carrying

10 shares is a claim on $34.99 of net worth that earned you $5.63 and generated $10.02 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-28% avg · 5y
FY21 -134%FY22 -38%FY23 -28%FY24 9%FY25 51%

It earned about -28% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+109% shares · 5y

Share count is up 109% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $11.18 and $11.93 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$11.93
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$306M
DCF · Growth Exit 5Y
$11.18
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$306M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$6.64
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $11.18
The three cases
Bear0.0%$9.43
Base5.0%$11.18
Bull10.0%$13.26

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001650164-24-000084 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001650164-25-000072 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001650164-26-000057 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001650164-24-000084 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001650164-25-000072 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001650164-26-000057 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001650164-24-000084 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001650164-25-000072 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001650164-26-000057 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001650164-23-000069 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-12-31 · accession 0001650164-26-000057 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2021-12-31 · accession 0001650164-22-000009 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2021-12-31 · accession 0001650164-24-000084 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001650164-25-000072 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001650164-26-000057 (CashAndCashEquivalentsAtCarryingValue)