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AO here we go, either a little too high or a little too low

The UK online white goods retail sensation,, is the latest hot stock market floatation. Early trading puts its valuation in the region of £1.6bn, so we thought we better try and work out what exactly it does. After all, no one would pay six times sales for a washing machine shop, would they?

From the about us section:

We operate a sleek and well-refined process via our three strands. With over 4.5 million customers, we live and breathe excellence from the very first phone call, to the moment we power up a customer’s brand new appliance in their own home.

Not delivering your brand new appliance to someone else’s home is a start, we guess. But about those strands, the notice of intention to float provides a bit more clarity:

In 2012, AO had a 24 per cent share of the online market for major domestic appliances in the United Kingdom, of which 19 per cent represented AO website sales, and 5 per cent represented third-party branded website sales according to the OC&C Report.

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