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Coach, Inc. And Tiffany & Co.Stock Price Valuation

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The presentation shows the valuation of two stocks using a TEV/EBITDA model.

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Coach, Inc. And Tiffany & Co.Stock Price Valuation

  1. 1. Coach, Inc. and Tiffany & Co. { stock price valuation11/9/2011 W. LATOCHA
  2. 2. THE MODEL
  3. 3. TEVan economic measure reflecting the market value of a whole business Enterprise value = common equity at market value + debt at market value + minority interest at market value, if any - associate company at market value, if any + preferred equity at market value - cash and cash-equivalents
  4. 4. CALCULATIONSAn own forecast – may be based on the one yeargrowth rate (or the other A mean for a one – it depends on the peer group investment’s horizon
  5. 5. Growth TEV/ Preferred Shares estimate Cash Debt TEV EBITDA EBITDA Stock Value outstanding (next 2 quarters)Tiffany & Co. 11,74 565,19 693,67 0 127,28 10040 0,08 854,99LVMH Moet Hennessy Louis Vuitton 11,03SAHermès International 28,8 EBITDA* 923,413407Compagnie Financiere Richemont SA 11,69 TEV* 12552,2662Coach, Inc. 12,15Signet Jewelers Ltd. 7,67 P* $ 97,61Blue Nile, Inc. 25,02Movado Group Inc 22,71Zale Corporation 23,5Fuqi International, Inc. -1,08Birks & Mayors, Inc. 13,1Whitehall Jewl Hldg, Inc. -3,21Industry Average 13,59
  6. 6. Growth Preferred TEV/ Shares estimate Cash Debt Stock TEV EBITDA EBITDA outstanding (next 2 Value quarters)Tiffany & Co. 11,74LVMH Moet Hennessy Louis Vuitton SA 11,03Hermès International 28,8Compagnie Financiere Richemont SA 11,69Coach, Inc. 12,15 847,97 24,06 0 289,78 17800 0,068634 1470Signet Jewelers Ltd. 7,67Blue Nile, Inc. 25,02Movado Group Inc 22,71 EBITDA* 1570,89198Zale Corporation 23,5 TEV* 21353,6583Fuqi International, Inc. -1,08Birks & Mayors, Inc. 13,1 P* $ 76,53Whitehall Jewl Hldg, Inc. -3,21Industry Average 13,59
  7. 7.  P*=97.61 Which means a 27% growth potential for the next 2 quarters
  8. 8.  P*=76.53 Which means a 18% growth potential for the next 2 quarters
  9. 9. BUT…these are only estimates

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