- Pandora is a Danish jewelry manufacturer and retailer. The company sells charms, rings, earrings, and bracelets among other products both online and via physical stores.
- Pandora receives more and more beneficial media attention. With this in mind, in my opinion, Pandora may look more and more like an online store in the coming years.
- Management organized a new retail center of excellence to improve merchandising, store development, planning, and execution. The new changes are expected to enhance FCF margins and sales growth.
- With 7%-7.5% sales growth, an exit multiple of 24x-30x, and a WACC of 7.5%-9%, the implied valuation would stand at $30-$50.
- Note that the company estimates an EBIT margin of close to 20%, capital expenditures/sales of 4%, and return on invested capital of 44%. I believe that management is overall very optimistic about the future.
For further details see:
Pandora: Online Jewelry Is Trending, And Shares Are Cheap