The proposed flotation of Ocado could value the fast-growing but loss-making online food retailer at more than £1bn (€1.2bn), prompting many analysts and potential investors to question the valuation. Financial News looks at some of the key questions Ocado will have to answer to justify the proposed price tag:

Philip Dorgan, a research analyst at Ambrian who has been vocal in his scepticism over Ocado's IPO, has said the company is likely to be worth £500m rather than £1bn. Charles Allen, an analyst at Consumer Equity Research, concurred, saying it was difficult to justify the valuation.