Consumer Discretionary IPOs

As the name suggests, companies in this sector are tied to consumer discretionary spending, and are sensitive to economic cycles. The consumer discretionary sector is a key pillar of the IPO market, alongside tech and healthcare. An active space for both private equity and venture capital, consumer IPOs often feature a combination of growth and earnings.

Most consumer IPOs are profitable, so investors value these companies on P/E, or in some cases P/E/G, EV/EBITDA, and EV/Sales. Investors appreciate that consumer companies sell an understandable product with a straightforward expansion story, focusing on metrics like volume & price, or whether a company can open new stores and grow same-store-sales.

This sector includes retailers, auto companies, brands that produce various consumer goods ranging from household durables to apparel, and companies offering consumer services such as restaurants & QSR chains, hotels, and others operating within hospitality.