Am I missing something here? Look at TreeHouse Foods Inc. $THS
Their market cap is $2.79bn but their 2018 revenues are $4bn?
How is this possible? How common is this?
Trending Content - Investment Banking Forum
Career Resources
WSO Free Modeling Series - Now Open Through
August 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Haven't looked into the company but probably very low fcf.
Here's another example for you: Kroger. Over $120 billion in revenue with a $21Bn market cap. It's more common than you think.
Why does that strike you as weird? Very low margin businesses or highly levered businesses would have market caps
Market cap is not related to revenue, maybe indirectly and in a handful of business models but in general that is not the case. You can make $1m revenue but if it only leaves you with $1 of profit/fcf it is unlikely that investors will want to pay more than $1m for the company.
Cupiditate distinctio consequatur quis cupiditate sit. Sed explicabo reiciendis dolorum exercitationem est dolor est. Voluptates numquam deleniti beatae quos provident.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...