Analyzing the Louis Vuitton Buyout of Tiffany Part 5: Conclusion
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A couple weeks ago we valued the Coty buyout of Kylie Cosmetics at a $1.2 billion valuation.
A couple of weeks ago we started an analysis of Tiffany & Co (TIF) after it announced and agreed to a $16 billion buyout by Louis Vuitton Moet Hennessy (LVMUY).
In Part 1, I did a full preliminary analysis of Tiffany using the preliminary analysis checklist I’ve developed over the last 12+ years.
In Part 2, I explain what all the metrics and terms on the checklist mean and why they’re on the list.
In Part 3, I explained what the cash conversion cycle is and why its so important.
In Part 4, I explained what Enterprise Value is, why its so important, what it shows, and how to calculate and use it yourself.
Today, we wrap up this case study by giving you my concluding thoughts on the Louis Vuitton buyout of Tiffany and its value.
“If you were to invest in the company (Tiffany) today the amount you could expect based on the profitability metrics compared to the company size – in this case, enterprise value – is only 1.8% based on free cash flow 4.6% based on operating profit.” One of my quotes from the video below.
Let’s get to it…
Here are some of the things I talked about in the 10-minute video above.
- Tell you what I think of the price Louis Vuitton paid for Tiffany – hint: it’s not a good one
- Recapped everything you’ve learned and can now use in your own analysis to find great investments faster and more consistently to earn higher investment returns
- How you’ll gain a large advantage over other average investors who won’t do this kind of analysis
- And more…
This video is part of the IloveValueInvesting Podcast. You can listen to this episode and our others in this podcast by going here.
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If you have any questions at this point in the case study let me know in the comments below so I can answer them in future videos.
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I hope you enjoyed and learned a ton from this mini case study on Tiffany.
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