So Prada is set for an IPO in Hong Kong this June. Final details will be announced by June 17.
Apparently valuation would be around €10.5bn. The company reported 2010 EBITDA and net income of €536m and €250m respectively.
Seems like a very high valuation to me. 19.6x EBITDA? WTF!
But then when you look at the comps, it seems in line with what the market thinks these businesses are worth : Buberry 22.3x 2011F EBITDA, LVMH 19.4x, etc. (those are the multiples commanded by pure players. PPR for example trades at lower multiples)
All those figures taken from an article in today's FT, P. 17, by the way.
What do you guys think?
I think that every JAP-ie bitch that lives and my neighborhood, along with their mothers, will be buying stock for the first time.
If it makes us money...if people pay through the nose for the brand name of the actual product, maybe it makes sense that they would be willing to pay through the nose for the brand name of a stock (?).
Well this makes sense as there's obviously a lot of intangibles linked to these brand names. But still I find it quite high a premium from a value perspective. I wonder what kind of valuations were achieved on the few LBOs which took place in the luxury sector (Jimmy Choo, etc.)
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