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But then it deals with physical goods; lots of inventory, physical ops, street-level marketing. Is $1B really high for such a company?
by hrjet 12y ago
But then it deals with physical goods; lots of inventory, physical ops, street-level marketing. Is $1B really high for such a company?
- adventured 12y agoYes, very high. Especially if the sales numbers thrown around in this thread are accurate (eg $500m to $1b in sales). Retail companies historically get relatively low valuations (particularly compared to your typical tech company), in part because the margins tend to be very mediocre in retail. A software company would typically have margins 5 to 10 times greater than most retail companies. Amazon has been an anomaly in this regard, while they have the terrible margins, they have been rewarded with a massive valuation.