- Canada-based Goose manufactures and sells luxury apparel. The company’s most relevant products are parkas and rainwear along with other accessories.
- I would expect the e-commerce growth to increase as the company continues its geographical expansion. Notice that the brand is growing in Europe and the rest of the world.
- I am also very optimistic about the announcement of manufacturing efficiencies, and the effects of strategic pricing. As a result, I would expect a significant increase in the FCF margins.
- We can use a WACC of 12.95%, which, in my opinion, is quite moderate. I also used an exit multiple of 40x, cash close to CAD100 million, and debt around CAD400 million.
- I included a sales growth of 25.15%, an EBITDA margin of 25%, a tax rate of around 20%, and a capital expenditures/sales ratio of 5%.
For further details see:
Global Penetration Could Make Canada Goose's Stock Price Spike By 25%