Content thumbnail Seeking sustainable growth - The luxury and cosmetics financial factbook

Page 10 DCF and valuation parameters A Financial parameters EY luxury and cosmetics sample: summary of financial parameters WACC Beta Gearing LTGR Shiseido 4.1% Prada 0.53 Richemont (10.3%) Coty 1.8% Safilo 7.2% Brunello Cucinelli 0.62 Coach (10.0%) Safilo 2.0% Luxottica 7.7% Moncler 0.64 Ralph Lauren (9.4%) Hengdeli 2.0% Beiersdorf 7.8% Luxottica 0.64 Michael Kors (7.7%) L'Oréal 2.0% L'Oréal 7.9% L'Occitane 0.68 Swatch (6.3%) Beiersdorf 2.3% Coty 8.0% Hengdeli 0.69 L'Occitane (5.3%) Jimmy Choo 8.1% Hugo Boss 0.70 Beiersdorf (4.4%) Coach 2.5% Estée Lauder 8.3% L'Oréal 0.71 Hermès (4.0%) Tiffany 2.5% Hermès 8.4% Shiseido 0.72 Burberry (3.9%) Luxottica 2.5% Tumi 8.8% Hermès 0.72 Tod's (3.8%) Estée Lauder 2.5% Average 8.9% Michael Kors 0.74 Tumi (3.5%) Prada 2.6% Ralph Lauren 8.9% Salvatore Ferragamo 0.75 Prada (0.5%) Hugo Boss 2.6% Tiffany 9.0% Beiersdorf 0.77 Estée Lauder 0.9% Kering 2.7% Kering 9.1% Safilo 0.79 Hugo Boss 1.1% Swatch 2.8% Prada 9.1% Coach 0.80 Salvatore Ferragamo 1.2% Average 3.0% L'Occitane 9.1% Ralph Lauren 0.81 L'Oréal 2.3% Moncler 9.1% Chow Tai Fook 0.81 Moncler 2.9% Richemont 3.0% Brunello Cucinelli 9.2% Average 0.82 Average 3.1% Michael Kors 3.0% LVMH 9.3% Tod's 0.83 Luxottica 3.8% Salvatore 3.0% Ferragamo Salvatore Ferragamo 9.4% Jimmy Choo 0.83 Brunello Cucinelli 4.1% Moncler 3.0% Burberry 9.4% Natura 0.87 Chow Tai Fook 6.3% L'Occitane 3.0% Swatch 9.5% Kering 0.88 LVMH 6.3% LVMH 3.0% Hugo Boss 9.6% Tumi 0.91 Tiffany 6.8% Burberry 3.2% Richemont 9.8% LVMH 0.95 Shiseido 9.3% Chow Tai Fook 3.3% Michael Kors 10.0% Burberry 0.98 Jimmy Choo 16.1% Coty Hermès 3.5% Coach 10.0% 0.99 Kering 16.4% Natura 10.0% Estée Lauder 1.04 Natura 17.0% Ralph Lauren 3.5% Hengdeli 10.2% Swatch 1.08 Safilo 18.7% Tod's 3.5% Tiffany 1.10 Hengdeli 21.6% Brunello 5.0% Tod's 10.3% Cucinelli Chow Tai Fook 10.8% Richemont 1.25 Coty 23.5% Natura 6.0% WACC Beta Gearing LTGR 9.2% 9.2% 3.0% 9.2% 0.82 8.9% 9.2% WACC 3.1% Low High Low High Low High Low Low High Low High Low High High Low High Industry benchmark Industry benchmark Industry benchmark Industry benchmark Industry benchmark Industry benchmark Industry benchmark Industry benchmark Source: data based on consensus of several brokers reports for each company Note: LTGR data was not available for Tumi, Shiseido and Jimmy Choo The luxury and cosmetics financial factbook 2015

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