The market has punished this year’s marquee US IPOs, except for Beyond Meat. Uber has lost more than a third of its value, Lyft is 8% below its IPO price. However, Beyond Meat, a producer of plant-based meat alternatives, has tripled in just over a month.
Beyond Meat’s business has generated operating margins of 34% on revenues of US$88m. It is trading at a trailing price to revenue multiple of 91x, which is over 100 times the average of the global meat processors (0.9x revenue).
The company has been touted as a disrupter of traditional business in the same vein as Tesla and Netflix. Plant-based protein is viewed as a cleaner and safer alternative to meat...
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