Can Beyond Meat Grow into Its Current Valuation?
When Beyond Meat (NASDAQ: BYND) was going public, no one expected the stock to quadruple soon after the IPO. But Beyond Meat's stock surpassed everyone's expectations. Based on its price to sales ratio at the time of writing this article, the company has to grow its revenue by more than 40 times to justify the current valuation. It's not difficult to understand why currently close to 10% of Beyond Meat's shares available for trading are shorted.
But as investors, sometimes it pays to take a contrarian approach. Can we imagine a reasonable path for Beyond Meat to grow its revenue by 40 times or even higher? Let's dig deeper into three ways Beyond Meat can surprise everyone once more and grow into its seemingly absurd valuation.
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Source Fool.com
