PVH Corporation Quarterly Valuation – April 2015 $PVH


PVH Corporation does not qualify for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned with the low current ratio along with the high PEmg ratio. Similarly, the less conservative Enterprising Investor is concerned by the level of debt relative to the current assets. As a result, all value investors should be very cautious when proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to valuation, it is critical to consider the company’s earnings history. In this case, the company has grown its EPSmg (normalized earnings) from $2.05 in 2011 to $3.95 for 2015. This level of demonstrated growth is within a margin of safety relative to the market’s implied estimate for earnings growth of 9.47% over the next 7-10 years. As a result, the ModernGraham valuation model returns an estimate of intrinsic value within a margin of safety relative to the price, indicating the company is fairly valued at the present time.

Read the full valuation on Seeking Alpha!

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Disclaimer: The author did not hold a position in PVH Corporation (PVH) at the time of publication and had no intention of changing that position within the next 72 hours. Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

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