Gildan Activewear Valuation

Q: What is the Fair Price of GIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GIL (CA$68.54) is trading below our estimate of [[fair value]] (CA$90.99)

Is GIL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GIL (CA$68.54) is trading below our estimate of fair value (CA$90.99)

Significantly Below Fair Value: GIL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GIL?

Key metric: As GIL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GIL. This is calculated by dividing GIL's market cap by their current earnings.
What is GIL's PE Ratio?
PE Ratio	17.9x
Earnings	US$421.86m
Market Cap	US$7.53b

GIL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.8x
Enterprise Value/EBITDA	11.4x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

How does GIL's PE Ratio compare to its peers?

The above table shows the PE ratio for GIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	38.7x
GOOS Canada Goose Holdings	19.8x	-4.5%	CA$1.3b
DOO BRP	19.5x	40.6%	CA$5.0b
TOY Spin Master	75.1x	30.1%	CA$3.2b
LEVI Levi Strauss	40.5x	45.4%	US$6.3b
GIL Gildan Activewear	17.9x	11.9%	CA$10.5b

Price-To-Earnings vs Peers: GIL is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (38.7x).

Price to Earnings Ratio vs Industry

How does GIL's PE Ratio compare vs other companies in the North American Luxury Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GIL is good value based on its Price-To-Earnings Ratio (17.9x) compared to the North American Luxury industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is GIL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.9x
Fair PE Ratio	21.5x

Price-To-Earnings vs Fair Ratio: GIL is good value based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GIL forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$68.54	CA$74.47 +8.7%	6.4%	CA$81.64	CA$66.82	n/a	5
Nov ’25	CA$69.29	CA$72.75 +5.0%	8.5%	CA$82.34	CA$64.73	n/a	5
Oct ’25	CA$63.36	CA$64.58 +1.9%	8.2%	CA$72.99	CA$56.58	n/a	5
Sep ’25	CA$61.42	CA$60.64 -1.3%	6.1%	CA$65.01	CA$56.09	n/a	6
Aug ’25	CA$57.26	CA$57.14 -0.2%	10.7%	CA$63.09	CA$44.18	n/a	6
Jul ’25	CA$51.89	CA$55.12 +6.2%	9.8%	CA$60.13	CA$43.51	n/a	6
Jun ’25	CA$52.14	CA$55.12 +5.7%	9.8%	CA$60.13	CA$43.51	n/a	6
May ’25	CA$47.60	CA$54.89 +15.3%	11.4%	CA$60.11	CA$41.51	n/a	6
Apr ’25	CA$50.35	CA$55.10 +9.4%	10.6%	CA$59.78	CA$42.35	n/a	6
Mar ’25	CA$46.93	CA$53.25 +13.5%	10.0%	CA$59.41	CA$42.98	n/a	6
Feb ’25	CA$45.38	CA$50.20 +10.6%	8.2%	CA$53.87	CA$42.35	n/a	5
Jan ’25	CA$43.82	CA$50.84 +16.0%	8.2%	CA$54.29	CA$42.67	n/a	5
Dec ’24	CA$50.12	CA$51.41 +2.6%	8.1%	CA$55.06	CA$43.28	n/a	5
Nov ’24	CA$38.71	CA$49.39 +27.6%	8.3%	CA$55.48	CA$43.03	CA$69.29	5
Oct ’24	CA$38.07	CA$48.09 +26.3%	8.3%	CA$53.86	CA$41.76	CA$63.36	5
Sep ’24	CA$41.02	CA$48.09 +17.2%	8.3%	CA$53.86	CA$41.76	CA$61.42	5
Aug ’24	CA$41.24	CA$49.64 +20.4%	9.1%	CA$55.37	CA$42.00	CA$57.26	5
Jul ’24	CA$42.71	CA$50.35 +17.9%	9.3%	CA$56.39	CA$42.77	CA$51.89	5
Jun ’24	CA$37.23	CA$50.40 +35.4%	9.4%	CA$56.56	CA$42.90	CA$52.14	5
May ’24	CA$43.91	CA$50.47 +14.9%	10.6%	CA$58.25	CA$42.77	CA$47.60	5
Apr ’24	CA$44.90	CA$50.96 +13.5%	10.8%	CA$59.13	CA$43.42	CA$50.35	5
Mar ’24	CA$43.58	CA$50.70 +16.3%	10.8%	CA$58.68	CA$43.05	CA$46.93	5
Feb ’24	CA$41.99	CA$51.12 +21.7%	15.1%	CA$64.20	CA$42.19	CA$45.38	5
Jan ’24	CA$37.08	CA$52.09 +40.5%	15.1%	CA$65.73	CA$43.20	CA$43.82	5
Dec ’23	CA$39.51	CA$50.83 +28.7%	15.1%	CA$63.97	CA$42.04	CA$50.12	5
Nov ’23	CA$43.00	CA$53.13 +23.6%	16.3%	CA$65.31	CA$42.38	CA$38.71	5

Analyst Forecast: Target price is less than 20% higher than the current share price.