It's rare enough to find a retailer that trades at an enterprise
value-to-revenue ratio of even 1.0, let alone the 2.17 times of
The Fresh Market (NYSE:
TFM).
Clearly, then, investors are putting a premium on what is one of the
few exciting growth stories in food retailing today. While there's a lot
to like about this story, including a massively under-penetrated
market, accelerating comps and good margins, the bulls seem to have this
story well ahead of itself. At these prices, The Fresh Market pretty
much has to be the next
Whole Foods (NYSE:
WFM) to support the implied valuation.
Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/The-Fresh-Market-Needs-To-Be-Whole-Foods-2.0-TFM-WMT-WFM-KR0601.aspx
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