Company Reports

We initiate coverage on Puig with a fair value estimate of EUR 23 per share, which implies a 23 times multiple against our 2024 adjusted earnings estimate and an enterprise value to adjusted EBITDA multiple of 15 times. Shares look overvalued, trading at a 15% premium to our intrinsic valuation.

We think chairman and CEO Marc Puig has done a commendable job sharpening Puig’s premium focus and expanding its brand collection through acquisitions, thus positioning the small beauty product maker well to benefit from premiumization trends globally. That said, we’re not convinced Puig has carved out an economic moat, given its lack of brand intangibles and small scale relative to moaty peers L’Oreal and Estee Lauder.