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REDDIT

How do you price companies like CALM and SWKS that are diversifying quickly?

Both used to sell basically one product to one company.

CALM- eggs to Walmart

SWKS- chips to Apple

Both have diversified where now 50% of CALMs revenue comes from prepaid food/quick cook restaurant eggs. And 40% of SWKS to auto/data center/wifi. Both are big post boom due to various cycles.

How do you price companies in transition? Mature businesses with high growth sectors.