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Tom is examining a fast-growing distribution company. The company has two-years of audited financial statements, but despite the high turnover is not yet profit positive.

Tom is examining a fast-growing distribution company. The company has two-years of audited financial statements, but despite the high turnover is not yet profit positive. Tom favours relative valuation in trying to determine what this company is worth. What kind of ratios would you suggest to Tom are useful for his analysis? Explain.

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