Snap is more valuable than these household names

Snap’s IPO valuation of $24 billion is quite a tall order for a company that has never turned a profit and warned investors that it never might. The company is now valued at 59 times its total revenue for 2016. Even for a fast-growing tech company that is a lot. Facebook in comparison has a price-to-sales ratio of around 14.

As Statista chart illustrates, Snap is now valued considerably higher than many American household names. That includes companies such as Ralph Lauren and Harley-Davidson that have been around for decades and probably will be for decades to come.

 

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