How can a company have higher revenues than marketcap?
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?
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<revenues. revenues="" are="" not="" the="" same="" as="" free="" cash="" flow="" to="" equity.=""></revenues.>
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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