BUZZ-AO World: explaining the valuation disconnect

** AO World has been one of the worst-performing IPOs in Europe this year, & valuations remain rich despite stock losing nearly half its value since the IPO

** Reaffirming its FY outlook does little to help stock which drops another 1 pct.

** Analysts seem less sanguine about FY2015 pre-tax profits, StarMine SmartEstimates currently show a predicted a negative surprise of 29.2 pct suggesting more downgrades are in store.

** Sign brokers already beginning to moderate expectations: Shore Capital, last to publish on 14 October, has FY 2015 EPS falling to 0.81p, well below £1.61 consensus

** Valuations still stretched: forward P/E of 65.1, 1.4 EV/sales vs 54.1 / 1.7 for ASOS (Other OTC: ASOMY - news) , & 17.3 / 0.5 for Dixons Carphone Chart: http://link.reuters.com/hyk53w

** Tightly-held stock providing support for shares beyond earnings, exacerbating valuation disconnect, traders say.

** Top ten shareholders control 80.4 pct of stock, six of top ten directors or founders.

** AO World v Dixons Carphone (LSE: DC.L - news) and ASOS chart: http://link.reuters.com/tyk53w (RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)