Birkenstock’s listing, expected to go live next Wednesday, will be a major test for the shaky IPO market.
To get the high price that the brand’s private equity owner deserves, investors have to accept that the German-made orthopedic sandals are like sporty Nike or Lululemon… and definitely not like Crocs.
Crocs has been one of the top consumer stocks over the past five years, significantly outperforming the shareholder returns of Nike and Lululemon. The problem is that Crocs shares trade at less than half of Birkenstock’s targeted valuation multiple.
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