We initiate coverage on Puig with a fair value estimate of EUR 23 per share, which implies a 23 times multiple against our 2024 adjusted earnings estimate and an enterprise value to adjusted EBITDA multiple of 15 times. Shares look overvalued, trading at a 15% premium to our intrinsic valuation.
With Puig’s premium brand portfolio, the company is poised to benefit from consumption upgrades in beauty products.
Puig’s appetite for more acquisitions in the coming years could result in sizable goodwill and distract management from implementing strategies for organic growth.
|
Metric
|
PUIG
|
COTY
|
OR
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.99 | 25.05 | 32.00 |
Price/Book Value | — | 2.18 | 7.54 |
Price/Sales | 1.11 | 1.46 | 5.35 |
Price/Cash Flow | 6.36 | 12.31 | 27.53 |
|
Metric
|
PUIG
|
COTY
|
OR
|
|---|---|---|---|
Quick Ratio | 0.89 | 0.30 | 0.70 |
Current Ratio | 1.40 | 0.80 | 1.10 |
Interest Coverage | 122.45 | 2.44 | 35.25 |
|
Metric
|
PUIG
|
COTY
|
OR
|
|---|---|---|---|
Return on Assets (Normalized) | 6.44% | 2.78% | 12.99% |
Return on Equity (Normalized) | 50.41% | 8.96% | 23.11% |
Return on Invested Capital (Normalized) | 15.43% | 5.77% | 17.20% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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