Tech or Retail? Ocado's U.S. Deal Gives It Amazon-Like Valuation
As an online grocer, Ocado Group Plc has always commanded a higher valuation than traditional retailers. The company’s landmark technology-licensing deal with Kroger Co. sent the shares up 44 percent on Thursday, squeezing short sellers and putting the ratio of Ocado’s enterprise value to sales above three, similar to internet giant Amazon. Tesco and Sainsbury both have ratios of less than 0.5.