ASOS - Getting Ahead of its self (ASC)

Discussion thread and info for those that believe ASC has gotten ahead of its self with its valuation.

The latest results state a PBT of £4.4m, with the current value at £300m

Assuming £9m for the full year, this places ASC on a PE of 33.

One area of concern is that massive increases in sales, seem to produce very modest increases in PBT. This half year has seen a £30m increase v prior year, yet PBT increased by £400k.

Margins have been reduced by 4% yoy, and the average price per unit in the basket is a measily £22.

Some of the competition, most have an online site and several including Next and Littlewoods are stocking the brands that were once exclusive to ASOS. Next are now live with their Brand Directory, which Retail Week claims is set to compete with ASC.

http://www.next.co.uk/shopping/branded/?pos=start&LID=01_05_03_05

http://www.newlook.co.uk/women/store.aspx
http://www.primark.co.uk/index2.shtml
http://xml.riverisland.com/flash/content.php
http://www.ethelaustin.co.uk/
http://www.hm.com/gb/#
http://www.next.co.uk/
http://www.houseoffraser.co.uk/on/demandware.store/Sites-hof-Site/default/Search-ShowBrand?brand=Diesel&fromBrand=Diesel&cm_mmc=PPC-_-Google-_-FashionBrands-_-Diesel-U&247SEM
http://www.diesel.com/home.php
http://www.tedbaker.com/
http://www.johnlewis.com/Fashion/Area.aspx
www.grattan.co.uk
www.topshop.com
http://www.monsoon.co.uk/
http://www.dorothyperkins.com
http://www.boohoo.com/amfcart/index.php?

It is believed ASC is a bid candidate, but who would spend £300m on a business generating this little PBT?

And who doesn't now have an online site operating?