Dr. Martens plc's (LON:DOCS) Intrinsic Value Is Potentially 19% Below Its Share Price
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Dr. Martens plc...
Has the U.K. Luxury Industry valuation changed over the past few years?
|Sun, 05 Dec 2021||UK£12.7b||UK£5.3b||UK£541.8m||33x|
|Tue, 02 Nov 2021||UK£13.2b||UK£4.9b||UK£381.7m||45.9x|
|Thu, 30 Sep 2021||UK£12.8b||UK£4.8b||UK£387.7m||38.2x|
|Sat, 28 Aug 2021||UK£13.6b||UK£4.8b||UK£386.1m||34.5x|
|Sun, 04 Jul 2021||UK£14.6b||UK£4.8b||UK£386.1m||41.7x|
|Wed, 07 Apr 2021||UK£13.7b||UK£4.7b||UK£354.7m||26.3x|
|Sat, 09 Jan 2021||UK£8.8b||UK£3.9b||UK£70.5m||43.3x|
|Fri, 02 Oct 2020||UK£7.5b||UK£4.0b||-UK£142,644,580.00||167.5x|
|Mon, 06 Jul 2020||UK£7.7b||UK£4.3b||-UK£64,093,624.00||58.3x|
|Thu, 09 Apr 2020||UK£6.2b||UK£4.7b||UK£46.6m||27.6x|
|Wed, 01 Jan 2020||UK£10.6b||UK£4.8b||UK£243.4m||31.1x|
|Sat, 05 Oct 2019||UK£10.8b||UK£5.0b||UK£405.5m||24.9x|
|Tue, 09 Jul 2019||UK£9.6b||UK£4.9b||UK£408.7m||21.9x|
|Mon, 01 Apr 2019||UK£10.3b||UK£4.8b||UK£414.0m||24.7x|
|Thu, 03 Jan 2019||UK£9.4b||UK£4.8b||UK£421.0m||21.2x|
Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 33.0x which is lower than its 3-year average PE of 45.0x. It appears they believe that earnings will not grow as fast as they have historically.
Past Earnings Growth: The earnings for companies in the Luxury industry have grown 8.8% per year over the last three years, and revenues for these companies have grown 3.2% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the U.K. Luxury industry?
|Apparel, Accessories and Luxury Goods||-0.80%|
Industry PE: Investors are most optimistic about the Footwear industry, which is trading close to its 3-year average PE ratio of 112x. This is likely because analysts are expecting annual earnings growth of 39%, which is higher than its past year's earnings decline of 52% per year. Meanwhile, investors are most pessimistic about the Apparel, Accessories and Luxury Goods industry, which is trading below its 3-year average of 60.5x.
Forecasted Growth: Analysts are most optimistic on the Footwear industry, expecting annual earnings growth of 39% over the next 5 years. This is better than its past earnings decline of 52% per year. Meanwhile, the Textiles industry is expected to see its earnings grow by 8.5% per year over the next few years.
Which companies have driven the market over the last 7 days?
French Connection Group