Coty Inc., together with its subsidiaries, manufactures, markets, and distributes beauty products worldwide. The company operates through four segments: Fragrances, Color Cosmetics, Skin & Body Care, and Brazil Acquisition. The company was founded in 1904 and is headquartered in New York, New York.
COTY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Coty Inc. To summarize, we found that Coty Inc ranked in the 6th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for COTY, they are:
Its compound free cash flow growth rate, as measured over the past 5.71 years, is -0.21% -- higher than only 8.99% of stocks in our DCF forecasting set.
Coty Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.73. This coverage rate is greater than that of only 7.12% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Coty Inc experienced a tax rate of about 4% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than only 17.08% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BGS, LND, FMX, HAIN, and BREW can be thought of as valuation peers to COTY, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Coty (COTY), which has seen a volatile few sessions following explosive allegations from Forbes on Friday, a deal with KKR, and change at the top of leadership, jumped more than 6% pre-market after disclosing it was in discussions with another member of the Jenner-Kardashian family.In a filing dated June 2,...
The management team at Coty Inc. (COTY) struck a major, value-accretive deal for the company’s shareholders. Initially disclosed but not made final back on May 11th, the firm finally closed the deal on June 1st. This transaction involves the partial divestiture of a major asset base the company owns, as...
Coty has tapped a new head of Kylie Cosmetics in the wake of explosive allegations that the unit’s 22-year-old founder, Kylie Jenner, has been lying about her sales in a desperate attempt to be named a billionaire. The parent of CoverGirl and OPI brands this week named Coty insider Simona Cattaneo to oversee Kylie Cosmetics’…