Dutch Bros Stock: Is the Growth Story Good Enough to Justify the Price Tag?
Dutch Bros' (NYSE: BROS) stock price has roughly doubled over the past year. Given the growth that the coffee chain has achieved, that's perhaps not surprising. But there's a small problem here that investors have to consider: Is Dutch Bros growing enough to justify its price tag?There are a number of traditional valuation metrics that investors lean on when trying to assess how attractive a stock is, including the price-to-sales (P/S), price-to-earnings (P/E), and price-to-book-value (P/B) ratios. Right now, Dutch Bros' P/S ratio is 5.2, its P/E is 190, and its P/B is nearly 14.Image source: Getty Images.Continue reading
Dutch Bros' (NYSE: BROS) stock price has roughly doubled over the past year. Given the growth that the coffee chain has achieved, that's perhaps not surprising. But there's a small problem here that investors have to consider: Is Dutch Bros growing enough to justify its price tag?
There are a number of traditional valuation metrics that investors lean on when trying to assess how attractive a stock is, including the price-to-sales (P/S), price-to-earnings (P/E), and price-to-book-value (P/B) ratios. Right now, Dutch Bros' P/S ratio is 5.2, its P/E is 190, and its P/B is nearly 14.
Image source: Getty Images.
