Should You Buy OFRM Stock After the Once Upon a Farm IPO?

From a valuation perspective, on any fundamental metric, OFRM looks expensive, but comparisons are tricky for a loss-making start-up. Its price/sales ratio is about 3.7x, far above the 0.8x median for food industry peers. By contrast, P/S or EV/revenue for larger packaged food companies is typically in the low 2x range. In short, investors are paying a premium for future growth. Whether that premium is justified depends on execution: the lofty valuation leaves little room for a miss on growth or margins.The ...