Couture pricing for Asos

Asos, the online clothing retailer , is a remarkable company – sales were up 52% to £340m last year and pre-tax profits were 41% higher at £28.6m, if you ignore the cost of moving to a bigger and better distribution centre. Overseas sales are booming, so the target of £1bn of turnover by 2015 may be achieved. But does that potential make Asos worth £1.6bn today? It's hard to see how. The valuation represents a phenomenal 47 times 2013's earnings on broker Investec's projections. Great company, wrong share price.