Puig Brands (BME:PUIG) Valuation: How Does the Market See Its Global Expansion After IPO and Growth Push?

Puig Brands (BME:PUIG) recently grabbed investors’ attention with a high-profile multi-brand activation at Kuala Lumpur International Airport. This event highlighted its global expansion efforts following its public market debut earlier this year.

See our latest analysis for Puig Brands.

Puig Brands’ splashy debut as a public company has coincided with bold expansion moves, but investor enthusiasm has yet to translate into short-term gains. While shares briefly rebounded with a 4.3% lift over the past week, the year-to-date share price return remains down 21.7%, and the 12-month total shareholder return sits at -26%. Momentum is still searching for a firm foothold as investors weigh growth potential against near-term volatility.

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With Puig trading well below analyst targets and recent gains failing to reverse year-to-date losses, the question remains: Is the market overlooking the company’s growth story, or has future upside already been priced in?

Price-to-Earnings of 12.4x: Is it justified?

Puig Brands is currently trading at a price-to-earnings (P/E) ratio of 12.4x, notably lower than both industry and peer averages, which suggests the stock may be discounted relative to its earnings.

The price-to-earnings ratio measures how much investors are willing to pay for each euro of earnings. It is a key gauge of market expectations around future growth and profitability. In the personal products sector, a lower P/E can indicate undervaluation if growth prospects are solid, or signal skepticism about future performance.

For Puig, the current P/E sits well below the European Personal Products industry average of 20.8x and the peer average of 50.4x. This discrepancy raises the question of whether the market is overlooking Puig’s recent profit acceleration and projected growth, or if it has valid concerns keeping the valuation suppressed. Stronger industry sentiment could push the multiple closer to those peer benchmarks if confidence rebounds.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 12.4x (UNDERVALUED)

However, slowing revenue growth and continued share price volatility could signal market caution. This may indicate that future performance might not meet elevated expectations.

Find out about the key risks to this Puig Brands narrative.

Another View: Our DCF Model Offers a Cross-Check

Taking a step back from earnings multiples, the SWS DCF model estimates that Puig’s shares are trading at €14.32, which is 6.6% below our fair value estimate of €15.34. This suggests an undervaluation. It also raises the question of whether the market sees risks the model may not capture.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Puig Brands for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Puig Brands Narrative

If you have a different perspective or want to dive deeper into the numbers, you can easily shape your own view of Puig in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Puig Brands.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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