Prada Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: PRP (€6.59) is trading above our estimate of fair value (€5.18)

Significantly Below Fair Value: PRP is trading above our estimate of fair value.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PRP. This is calculated by dividing PRP's market cap by their current earnings.
What is PRP's PE Ratio?
PE Ratio22.4x
Earnings€749.36m
Market Cap€16.79b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.7x
ADS adidas
103.5x38.1%€39.4b
BOSS Hugo Boss
10.6x13.1%€2.3b
BIJ Bijou Brigitte modische Accessoires
11.2xn/a€268.7m
PUM PUMA
25.5x18.6%€6.6b
PRP Prada
22.4x10.9%€137.9b

Price-To-Earnings vs Peers: PRP is good value based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (37.7x).


Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PRP 22.4xIndustry Avg. 14.4xNo. of Companies6PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRP is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the European Luxury industry average (14.4x).


Price to Earnings Ratio vs Fair Ratio

What is PRP'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.

PRP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio21.4x

Price-To-Earnings vs Fair Ratio: PRP is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (21.4x).


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 PRP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.59
€8.21
+24.7%
9.3%€9.48€6.04n/a21
Nov ’25€6.84
€8.13
+18.9%
9.8%€9.48€6.04n/a21
Oct ’25€6.81
€7.84
+15.1%
9.1%€8.99€6.04n/a20
Sep ’25€6.33
€8.15
+28.8%
9.0%€9.37€6.04n/a20
Aug ’25€7.20
€8.16
+13.4%
9.1%€9.37€6.04n/a20
Jul ’25€7.01
€8.30
+18.5%
7.0%€9.37€7.52n/a18
Jun ’25€7.50
€8.14
+8.5%
8.4%€9.14€6.09n/a19
May ’25€7.56
€8.12
+7.4%
8.5%€9.14€6.09n/a19
Apr ’25€7.49
€7.55
+0.8%
12.1%€8.82€4.97n/a18
Mar ’25€6.48
€6.72
+3.8%
14.8%€8.27€4.63n/a19
Feb ’25€5.83
€6.77
+16.2%
14.2%€8.77€4.96n/a20
Jan ’25€5.27
€6.98
+32.5%
13.4%€8.77€5.32n/a20
Dec ’24€5.04
€6.99
+38.9%
13.5%€8.77€5.32n/a20
Nov ’24€5.42
€7.26
+33.9%
13.1%€8.77€5.32€6.8420
Oct ’24€5.49
€7.37
+34.3%
13.3%€9.12€5.39€6.8120
Sep ’24€5.97
€7.86
+31.8%
11.0%€9.09€5.60€6.3320
Aug ’24€6.37
€7.89
+24.0%
10.7%€9.01€5.60€7.2020
Jul ’24€6.20
€7.88
+27.1%
12.4%€9.16€5.63€7.0120
Jun ’24€6.25
€7.92
+26.8%
11.5%€9.16€5.63€7.5020
May ’24€6.61
€7.55
+14.2%
13.6%€9.16€4.54€7.5620
Apr ’24€6.58
€7.21
+9.6%
16.0%€9.16€4.54€7.4920
Mar ’24€6.50
€6.85
+5.4%
13.5%€9.08€4.61€6.4821
Feb ’24€5.81
€6.73
+15.9%
14.0%€8.94€4.61€5.8321
Jan ’24€5.36
€6.79
+26.6%
14.7%€9.18€4.61€5.2721
Dec ’23€5.23
€6.82
+30.4%
14.7%€9.38€4.75€5.0421
Nov ’23€4.82
€6.90
+43.1%
15.2%€9.71€4.75€5.4220

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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