adidas Valuation

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

ADS (CHF350.7) is trading below our estimate of [[fair value]] (CHF388.63)

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

Valuation Score

1/6

Valuation Score 1/6

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 ADS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADS (CHF350.7) is trading below our estimate of fair value (CHF388.63)

Significantly Below Fair Value: ADS is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ADS. This is calculated by dividing ADS's market cap by their current earnings.
What is ADS's PE Ratio?
PE Ratio	102.6x
Earnings	€381.00m
Market Cap	€39.10b

ADS 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	1.9x
Enterprise Value/EBITDA	31.2x
PEG Ratio	2.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ADS 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	19.1x
CFR Compagnie Financière Richemont	22.7x	9.1%	CHF 71.5b
UHR Swatch Group	16.1x	13.2%	CHF 8.3b
LULU Lululemon Athletica	24.6x	7.2%	US$38.9b
KER Kering	13.1x	7.8%	€27.2b
ADS adidas	102.6x	38.2%	CHF 39.1b

Price-To-Earnings vs Peers: ADS is expensive based on its Price-To-Earnings Ratio (102.6x) compared to the peer average (17.3x).

Price to Earnings Ratio vs Industry

How does ADS's PE Ratio compare vs other companies in the European Luxury Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ADS is expensive based on its Price-To-Earnings Ratio (102.6x) compared to the European Luxury industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is ADS'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.

ADS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	102.6x
Fair PE Ratio	37.8x

Price-To-Earnings vs Fair Ratio: ADS is expensive based on its Price-To-Earnings Ratio (102.6x) compared to the estimated Fair Price-To-Earnings Ratio (37.8x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.