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ORAGIN Foods Inc V.OG.H

Alternate Symbol(s):  OGGFF

Oragin Foods Inc. is a Canadian multi-pronged food company. The Company operates through a retail division, Organic Garage, and a Consumer-Packaged Goods (CPG) division. The Company also houses a Retail Division, which owns and operates natural and organic food retailers, Organic Garage.


TSXV:OG.H - Post by User

Post by Torontojayon May 07, 2021 6:01am
356 Views
Post# 33150304

Longos valuation relative to Organic Garage

Longos valuation relative to Organic Garage

If we look at Longos grocery store which was purchased by Sobeys for $357 million for a 51% stake. At 36 locations this puts the valuation per store at 700/36 =~ $19.44 million. A typical Longos store is 20-40k square feet compared to Organic garage at 12-13k square feet. Taking the mid point of that range we get that Longos is approximately 2.4 times the size of an Organic garage store. This puts Organic per store valuation at $8.1 million or a total value of $32.4 million with 4 locations. The current market cap of Organic garage is $26.4 million or an enterprise value of around $28.3 million. With this low valuation you are getting the Future of Cheese purchase for free. 

This company will follow the same path as Longos and both are currently grocery stores I shop in. 

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