Wednesday, June 12, 2013 4:51:35 PM
http://seekingalpha.com/article/1495892-coty-ipo-should-be-bought-by-investors
When deciding how shares of Coty stack up against their peers, it's important to look at sales from the last fiscal year. With a market captilization of $26.28 billion, Estee Lauder trades at 2.7 times last year's sales. The company also trades at 2.6 times estimated forward annual sales of $10.20 billion.
Rival Elizabeth Arden, with a small market capitalization of $1.4 billion, trades at a much cheaper range. Shares trade at only 1.1 times last year's annual sales.
If we assume the mid-point of $17.50 per share and total outstanding shares of 383.8 million, shares of Coty will trade with a price to sales of only 1.5 times last year's sales. If the price jumps to $20 per share, as I believe it will, shares of Coty still trade for only 1.7 times last year's sales.
With this equation, you can see that Coty will most likely be offered to investors with a cheaper price to sales valuation than rival Estee Lauder. The company also will see better growth through recent acquisitions and dominance in all three categories.
Coty shares will price higher than their initial range due to demand. However, I think shares are still worth buying up to $22. Revenue is growing in all three sectors thanks to new products, acquisitions, and new country entry. Once public, I expect Coty to go after even bigger names in its acquisition quest, adding regional leaders and product leaders into its huge base of brands. This is the beauty company that should be in your portfolio going forward.
Recent COTY News
- Orveda, the French multi-award-winning biotech skincare brand, unveils LA MAISON ORVEDA NEW YORK CITY, a wellness sanctuary dedicated to glow and skin longevity, located in the heart of the Upper East Side. • Business Wire • 09/12/2024 04:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/04/2024 08:33:15 PM
- ZTO Express Sees 10.1% Revenue Growth, Keysight Technologies Stock Rises 10%, and Latest in Earnings • IH Market News • 08/21/2024 12:13:43 PM
- Coty Announces Filing of Annual Report on Form 10-K for the Fiscal Year Ended June 30, 2024 • Business Wire • 08/20/2024 09:43:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 08/20/2024 08:40:47 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/20/2024 08:34:47 PM
- Coty Reports Double-Digit Growth in FY24, Outpacing Beauty Market • Business Wire • 08/20/2024 08:30:00 PM
- U.S. Index Futures Hold Steady, Oil Prices Drop • IH Market News • 08/20/2024 09:58:42 AM
- Sally Hansen® and Warner Bros. Team Up for a Scary Good Nail Polish Collection to Celebrate the Release of This Fall’s Highly Anticipated Movie “Beetlejuice Beetlejuice” • Business Wire • 08/15/2024 02:11:00 PM
- Sally Hansen® and Warner Bros. Team Up for a Scary Good Nail Polish Collection to Celebrate the Release of This Fall’s Highly Anticipated Movie “Beetlejuice Beetlejuice” • Business Wire • 08/15/2024 01:00:00 PM
- KILL Sally Hansen® and Warner Bros. Discovery Team up for a Scary Good Nail Polish Collection to Celebrate the Release of This Fall’s Highly Anticipated Movie “Beetlejuice Beetlejuice” • Business Wire • 08/07/2024 09:37:00 PM
- Sally Hansen® and Warner Bros. Discovery Team up for a Scary Good Nail Polish Collection to Celebrate the Release of This Fall’s Highly Anticipated Movie “Beetlejuice Beetlejuice” • Business Wire • 08/07/2024 03:00:00 PM
- Calvin Klein Fragrances führt CK One Essence ein • Business Wire • 08/01/2024 11:31:00 PM
- Calvin Klein Fragrances présente CK One Essence • Business Wire • 08/01/2024 11:24:00 PM
- Calvin Klein Fragrances Introduces CK One Essence • Business Wire • 08/01/2024 12:31:00 PM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/31/2024 08:28:58 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/30/2024 08:56:03 PM
- Coty Inc. to Present at Upcoming Investor Events • Business Wire • 05/28/2024 02:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/22/2024 08:49:54 PM
- Coty Inc. Prices €500 Million of Senior Secured Notes • Business Wire • 05/22/2024 08:24:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/21/2024 08:21:55 PM
- Coty Inc. to Offer Senior Secured Notes • Business Wire • 05/21/2024 06:30:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/07/2024 08:22:14 PM
- Disney Slashes Streaming Losses, UBS shoots up 9% as profit triples expectations, and More in Earnings • IH Market News • 05/07/2024 11:46:44 AM
- Coty and Lena Gercke Embark on New License Agreement • Business Wire • 05/07/2024 06:00:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM