With 49% gross profit margin and 24% revenue growth, Meten International (MEDU) will most likely have an EV/Sales ratio close to 2.5x-3.5x. Notice that other competitors with less revenue growth are selling at 0.46x-2.8x forward sales. If the total enterprise value goes below $450 million, the company will represent a buying opportunity.
With that, there are corporate governance risks. The company expects to have a dual-class ordinary share structure. Also, it may be a controlled entity after the IPO. If the Board of Directors is not independent, the market could react by pushing