Office Hours: On Running, Expanding College Admissions, and How Banks Can Boost Their Brands

IPO Analysis

Scott Galloway provides an insightful analysis of On Running's IPO, highlighting its impressive market momentum. The Swiss brand raised about $750 million, achieving a market cap of approximately $10 billion shortly after its IPO. Despite being a smaller player compared to giants like Nike and Adidas, On Running has carved a niche by appealing to consumers who value uniqueness and exclusivity.

If you value being seen as different or someone in the know, the company posted this is on 614 million in sales for the twelve months ending in June 2021.

--- Scott Galloway

Galloway notes that the company's enterprise value is 17 times its sales, indicating strong investor interest and potential for growth 1.

   

Growth Potential

The long-term growth potential of On Running is a focal point for investors, as discussed by Scott Galloway. He appreciates the brand's ability to capture consumer interest with its stylish and premium-priced products, likening it to capturing "lightning in a bottle." Galloway advises caution, however, noting that while the company has significant growth numbers, its stock may be overvalued at current levels.

I wouldn't touch the stock at these levels, and that is every stock at some point is a buy unless you think it's going out of business.

--- Scott Galloway

He suggests that investors should consider holding onto the stock for the long term, as the company could grow into its valuation and continue to expand 2.