Skechers U.S.A Valuation

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

SKAA (€59.6) is trading below our estimate of [[fair value]] (€79.27)

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

Below Fair Value: SKAA (€59.6) is trading below our estimate of fair value (€79.27)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SKAA. This is calculated by dividing SKAA's market cap by their current earnings.
What is SKAA's PE Ratio?
PE Ratio	14.8x
Earnings	US$627.33m
Market Cap	US$9.31b

SKAA 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	1.2x
Enterprise Value/EBITDA	9.8x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SKAA 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	54x
PUM PUMA	25.4x	18.6%	€6.5b
BOSS Hugo Boss	12.6x	13.1%	€2.7b
ADS adidas	100.5x	38.1%	€38.3b
BIRK Birkenstock Holding	77.5x	49.3%	US$8.9b
SKAA Skechers U.S.A	14.8x	11.9%	€9.3b

Price-To-Earnings vs Peers: SKAA is good value based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (54x).

Price to Earnings Ratio vs Industry

How does SKAA'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: SKAA is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the European Luxury industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is SKAA'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.

SKAA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.8x
Fair PE Ratio	20.1x

Price-To-Earnings vs Fair Ratio: SKAA is good value based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).

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 SKAA 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	€59.60	€75.10 +26.0%	8.7%	€91.53	€65.90	n/a	14
Nov ’25	€56.24	€75.86 +34.9%	8.7%	€92.45	€66.56	n/a	14
Oct ’25	€59.80	€72.79 +21.7%	5.9%	€82.66	€64.69	n/a	15
Sep ’25	€61.68	€74.98 +21.6%	6.2%	€84.73	€66.31	n/a	15
Aug ’25	€60.08	€74.98 +24.8%	6.2%	€84.73	€66.31	n/a	15
Jul ’25	€64.08	€73.34 +14.5%	9.3%	€81.96	€55.88	n/a	15
Jun ’25	€64.86	€68.50 +5.6%	10.5%	€81.04	€55.25	n/a	13
May ’25	€61.52	€68.69 +11.7%	10.1%	€82.26	€56.09	n/a	14
Apr ’25	€56.06	€65.41 +16.7%	9.5%	€79.14	€52.14	n/a	15
Mar ’25	€57.10	€64.86 +13.6%	10.2%	€78.92	€52.00	n/a	13
Feb ’25	€57.68	€66.41 +15.1%	11.1%	€81.44	€54.60	n/a	12
Jan ’25	€56.44	€59.79 +5.9%	14.7%	€80.72	€44.95	n/a	12
Dec ’24	€53.86	€58.28 +8.2%	14.8%	€80.20	€44.66	n/a	12
Nov ’24	€45.47	€60.29 +32.6%	15.0%	€83.28	€46.37	€56.24	12
Oct ’24	€47.42	€58.13 +22.6%	9.8%	€70.19	€45.86	€59.80	12
Sep ’24	€46.31	€57.27 +23.7%	10.7%	€69.33	€45.30	€61.68	12
Aug ’24	€50.38	€56.00 +11.2%	11.3%	€68.29	€43.70	€60.08	12
Jul ’24	€45.47	€54.77 +20.5%	8.5%	€60.59	€44.75	€64.08	12
Jun ’24	€47.88	€54.77 +14.4%	8.5%	€60.59	€44.75	€64.86	12
May ’24	€45.16	€52.87 +17.1%	10.2%	€59.25	€42.93	€61.52	12
Apr ’24	€42.53	€49.87 +17.3%	9.4%	€57.16	€42.41	€56.06	12
Mar ’24	€41.87	€51.79 +23.7%	12.0%	€64.24	€42.83	€57.10	13
Feb ’24	€44.05	€48.68 +10.5%	11.7%	€59.79	€38.64	€57.68	13
Jan ’24	€39.08	€44.97 +15.1%	7.9%	€50.90	€39.59	€56.44	13
Dec ’23	€40.13	€43.61 +8.7%	12.7%	€51.83	€29.75	€53.86	12
Nov ’23	€35.20	€44.16 +25.4%	14.5%	€53.56	€30.75	€45.47	12

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