Research on the Investment Value of Kerings Group Based on the Multiple Valuation Method

Xuan Feng

doi:10.54691/bcpbm.v31i.2668

Authors

Xuan Feng

DOI:

https://doi.org/10.54691/bcpbm.v31i.2668

Keywords:

Investment Value; Kerings; Multiple Valuation Method.

Abstract

Estimating the company value of major luxury jewelry is one of the key topics of research today. Researchers have found that Kering Group's stock has slowly improved as the epidemic stabilized. However, the mechanism behind its formation and the scope of its impact lacks a uniform explanation. Therefore, this paper explores the investment value of Kering Group by collecting data for 2021 and analyzing the data through two different approaches of P/E ratio and EV/EBITDA. The results of both sets of calculations are that the share price of Kering Group is undervalued. It indicates that Kering Group has much investment value in the future. However, a low valuation does not reduce investment risk, but a low valuation has a clear advantage when the holding period is extended. This paper is a reference for investors to make investment decisions and provide constructive recommendations for the Kering Group.

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