OCDGF - Ocado Group: Valuation Overrates Its Future Profitability

• Ocado consists of two businesses really: a UK online retailer and a retailing platform service it sells to other retailers.
• Both are decent businesses although sustained profitability looks far off.
• It's really not a tech business in with a scaleable model.
• Using a ratio of 150 times last year's revenues for the non-retail part of the business, the shares look overvalued to me.
• Momentum may continue to push the valuation higher still but in the end I don't think the company merits the current share price.

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