The future is unknowable, which is a problem in investing. It’s a particularly thorny task when a stock is brand-new and its future sales depend on a significant expansion of the company’s sales to new markets, and the extension of its brand to a growing list of products.
Yes, we’re talking about Canada Goose Holdings Inc., which debuted spectacularly this week on Canadian and U.S. markets, suggesting investors are not terribly worried about these known unknowns. Originally to be priced at $14 to $16 then marked up to $17, the shares closed Friday at $23. That gives the company a valuation of nearly $2.5-billion, which is 35 times the company’s trailing EBITDA, or earnings before interest, taxes, depreciation and amortization, and nearly 70 times its net income for the prior 12 months.
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- Canada Goose Holdings Inc$24.22-0.04(-0.16%)
- Updated May 26 3:59 PM EDT. Delayed by at least 15 minutes.