RE:RE:RE:Longos valuation relative to Organic Garage Torontojay wrote: Renofund wrote: Torontojay wrote: 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.
you have made NO mention of sales LOL ...
How is looking at sales any different than looking at size? Sales and size for that matter are very much correlated.
Btw, sales mean absolutely nothing without profits.
sales (and profit obv) and size are very different things. You could have a store the size if costco, but if you arent selling anything it doesnt matter. Plus, stores can be/are valued on a sales/sq ft basis. You talk about the valuation of the longos stores, BUT, no mention of how sobeys actually valued each store - which is key LOL. One cant simply take elementry long division and say "well Longos has this many stores and got this price, so each store is worth this" and then extrapolate that to OG. I like OG, and am a holder, so NOT bashing here at all - but to suggest size and sales are the same thing is alarming