Gildan Activewear Inc.

DB:VGA Stock Report

Market Cap: €7.0b

Gildan Activewear Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: VGA (€45) is trading below our estimate of fair value (€65.19)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VGA. This is calculated by dividing VGA's market cap by their current earnings.
What is VGA's PE Ratio?
PE Ratio16.9x
EarningsUS$421.86m
Market CapUS$7.25b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VGA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.9x
BOSS Hugo Boss
14.3x13.3%€3.1b
ADS adidas
111x38.1%€42.3b
BIJ Bijou Brigitte modische Accessoires
12.7xn/a€262.9m
PUM PUMA
25.7x18.5%€6.6b
VGA Gildan Activewear
16.9x12.2%€10.4b

Price-To-Earnings vs Peers: VGA is good value based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (40.9x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VGA 16.9xIndustry Avg. 16.2xNo. of Companies8PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VGA is expensive based on its Price-To-Earnings Ratio (16.9x) compared to the European Luxury industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is VGA'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.

VGA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.9x
Fair PE Ratio19.4x

Price-To-Earnings vs Fair Ratio: VGA is good value based on its Price-To-Earnings Ratio (16.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.4x).

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 VGA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€45.00
€50.56
+12.4%
10.7%€56.91€41.31n/a6
Dec ’25€46.60
€51.19
+9.9%
6.9%€56.29€45.30n/a5
Nov ’25€45.40
€48.10
+6.0%
8.5%€54.45€42.80n/a5
Oct ’25€42.20
€42.79
+1.4%
8.2%€48.36€37.49n/a5
Sep ’25€40.60
€40.32
-0.7%
6.1%€43.23€37.30n/a6
Aug ’25€38.20
€38.17
-0.09%
10.7%€42.14€29.51n/a6
Jul ’25€35.20
€37.18
+5.6%
9.8%€40.55€29.35n/a6
Jun ’25€34.40
€37.18
+8.1%
9.8%€40.55€29.35n/a6
May ’25€32.40
€37.53
+15.8%
11.4%€41.10€28.38n/a6
Apr ’25€34.20
€37.44
+9.5%
10.6%€40.63€28.78n/a6
Mar ’25€31.80
€36.45
+14.6%
10.0%€40.66€29.42n/a6
Feb ’25€31.00
€34.37
+10.9%
8.2%€36.88€28.99n/a5
Jan ’25€29.80
€34.80
+16.8%
8.2%€37.16€29.21n/a5
Dec ’24€33.20
€34.92
+5.2%
8.1%€37.40€29.40€46.605
Nov ’24€26.60
€33.70
+26.7%
8.3%€37.86€29.36€45.405
Oct ’24€26.20
€32.74
+24.9%
8.3%€36.66€28.43€42.205
Sep ’24€27.40
€32.74
+19.5%
8.3%€36.66€28.43€40.605
Aug ’24€28.20
€33.80
+19.9%
9.1%€37.71€28.61€38.205
Jul ’24€29.20
€35.03
+20.0%
9.3%€39.23€29.76€35.205
Jun ’24€25.40
€34.41
+35.5%
9.4%€38.61€29.29€34.405
May ’24€29.00
€33.81
+16.6%
10.6%€39.02€28.65€32.405
Apr ’24€29.80
€35.12
+17.9%
10.8%€40.75€29.92€34.205
Mar ’24€30.20
€35.12
+16.3%
10.8%€40.64€29.82€31.805
Feb ’24€28.40
€35.18
+23.9%
15.1%€44.17€29.03€31.005
Jan ’24€25.40
€35.89
+41.3%
15.1%€45.28€29.76€29.805
Dec ’23€27.40
€36.68
+33.9%
15.1%€46.16€30.34€33.205

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 10:02
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/29
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Gildan Activewear Inc. is covered by 36 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harriet LiAccountability Research Corporation
Ishan MajumdarBaptista Research
Stephen MacLeodBMO Capital Markets Equity Research