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?
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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.
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