This document analyzes a proposed pair trade involving going long on PPR and shorting LVMH on January 3rd, 2013. PPR is a luxury and lifestyle company with a market capitalization of €18.12 billion, while LVMH is a luxury goods company with a market cap of €72.004 billion. The document compares the companies' price and return data, analysts' recommendations, market multiples, and next earnings report dates to make the case that PPR presents a better investment opportunity than LVMH.

1. Pair Trade: Long PPR - Short LVMH
Thursday, January 3rd 2013
Companies Description Investment Case
Market Price Data
PPR ( PP FP)
Last Price (€) 143.800
YTD Change 2.02%
Mkt Cap (€ bn) 18.120
LVMH (MC FP)
Last Price (€) 141.750
YTD Change 2.13%
Mkt Cap (€ bn) 72.004
Source: Bloomberg
Analysts Recommendations:
Source: Bloomberg
Market Multiples Technical Comment
P/E EPS DY Net Debt
2013 2011/13 2013 /EBITDA
Est. CAGR Est. Est. Est. 2013
PP FP 14.1 13.6% 3.3% 0.9
MC FP 17.8 14.0% 2.4% 0.3
Source: Bloomberg
Next Report Date & Events
PP FP FY 2012 Results Feb 15th, 2013
MC FP 2012 Annual Results Feb 1st, 2013
Source: Companies information
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