Guararapes Confeccoes SA
BOVESPA:GUAR3

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Guararapes Confeccoes SA Logo
Guararapes Confeccoes SA
BOVESPA:GUAR3
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Price: 9.41 BRL 2.95% Market Closed
Market Cap: R$4.7B

EV/FCFF

9.1
Current
1%
More Expensive
vs 3-y average of 9

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
9.1
=
Enterprise Value
R$5.6B
/
Free Cash Flow to Firm
R$626m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
9.1
=
Enterprise Value
R$5.6B
/
Free Cash Flow to Firm
R$626m

Valuation Scenarios

Guararapes Confeccoes SA is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (9), the stock would be worth R$9.36 (1% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-1%
Maximum Upside
+166%
Average Upside
53%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 9.1 R$9.41
0%
3-Year Average 9 R$9.36
-1%
5-Year Average 9 R$9.36
-1%
Industry Average 24.2 R$25.04
+166%
Country Average 13.4 R$13.88
+48%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
BR
Guararapes Confeccoes SA
BOVESPA:GUAR3
4.7B BRL 9.1 11.8
FR
LVMH Moet Hennessy Louis Vuitton SE
PAR:MC
224.1B EUR 17.1 20.6
FR
Hermes International SCA
PAR:RMS
170.2B EUR 38 37.6
KR
SBW
KRX:102280
235.5T KRW -632 676.8 -117 637.1
CH
Compagnie Financiere Richemont SA
SIX:CFR
85.8B CHF 23.7 23.5
FR
EssilorLuxottica SA
PAR:EL
84B EUR 24.7 36.3
FR
Christian Dior SE
PAR:CDI
76.7B EUR 7.1 16.9
IN
Titan Company Ltd
NSE:TITAN
3.9T INR 387.4 81.7
FR
Kering SA
PAR:KER
28.5B EUR 16.9 396.2
DE
Adidas AG
XETRA:ADS
26.3B EUR 104.4 19.7
CN
ANTA Sports Products Ltd
HKEX:2020
232.7B HKD 10.2 14.8
P/E Multiple
Earnings Growth PEG
BR
Guararapes Confeccoes SA
BOVESPA:GUAR3
Average P/E: 65.9
11.8
47%
0.3
FR
LVMH Moet Hennessy Louis Vuitton SE
PAR:MC
20.6
11%
1.9
FR
Hermes International SCA
PAR:RMS
37.6
12%
3.1
KR
SBW
KRX:102280
Negative Multiple: -117 637.1 N/A N/A
CH
Compagnie Financiere Richemont SA
SIX:CFR
23.5
16%
1.5
FR
EssilorLuxottica SA
PAR:EL
36.3
26%
1.4
FR
Christian Dior SE
PAR:CDI
16.9
N/A N/A
IN
Titan Company Ltd
NSE:TITAN
81.7
32%
2.6
FR
Kering SA
PAR:KER
396.2
186%
2.1
DE
Adidas AG
XETRA:ADS
19.7
23%
0.9
CN
ANTA Sports Products Ltd
HKEX:2020
14.8
10%
1.5

Market Distribution

In line with most companies in Brazil
Percentile
33nd
Based on 365 companies
33nd percentile
9.1
Low
0.2 — 8.2
Typical Range
8.2 — 24.4
High
24.4 —
Distribution Statistics
Brazil
Min 0.2
30th Percentile 8.2
Median 13.4
70th Percentile 24.4
Max 1 667.2

Guararapes Confeccoes SA
Glance View

Guararapes Confecções SA engages in the operation of retail clothing store chains. The company is headquartered in Natal, Rio Grande Do Norte and currently employs 31,155 full-time employees. The firm is involved in the manufacture, wholesale, retail and export of clothing and fabrics, as well as in the import and wholesale of footwear, bath and table linens, perfumes and cosmetics, among others. The firm's activities are divided into three business segments: Retail, which focuses on selling apparel and other goods through stores network under the Lojas Riachuelo brand name; Finance, which offers consumer loans granted through credit cards, and Other, which includes commercial real estate rental and management, as well as road trucking, among others. The firm operates through a number of subsidiaries, such as Lojas Riachuelo SA, Midway Shopping Center Ltda, Midway SA - Credito Financiamento e Investimento and Transportadora Casa Verde Ltda.

GUAR3 Intrinsic Value
12.01 BRL
Undervaluation 22%
Intrinsic Value
Price R$9.41
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