The IPO Market Has Taken The Baton From Large Cap Tech And Is Running Like Crazy | Value Investing News

The IPO Market Has Taken The Baton From Large Cap Tech And Is Running Like Crazy

  • Unlike high margin tech companies like Facebook or Google, traditional businesses like food manufacturing or general merchandise retail have low margins and therefore will not result in large price-to-sales multiples over the long term.
  • At that price, CHWY’s market value is $17 billion.
  • General merchandise retailers like Costco, Target, Wal-Mart, and Best Buy all trade for less than 1x annual sales in the public market.
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