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Birkenstock plans to go public this week following other debuts from companies like Arm Holdings (ARM), Instacart (CART), and Klaviyo (KYVO). Torch Capital's founder and managing partner, Jon Keidan, says he's been advising companies to wait until next year, at the earliest, before they go public.

When evaluating an IPO like Birkenstock, Keidan recommends comparing it to other companies in its market, such as, in this case, Nike or Steven Madden. Also examine consumer sentiment and behavior trends to gauge the company's products. For example, are Birkenstock sandals still popular and fashionable? Can consumer spending support the valuation long-term?

Birkenstock has "done incredibly well as a brand and positioning and as a style company. It's just where does that fall in the bigger macro-equation." Keidan tells Yahoo Finance.

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