Valuation Premiums for Luxury Brands

I have a question I would appreciate you guys weigh in on:

I need to determine what type of premium to include in a valuation of a high end brand. The company is private and a very niche pure play related to household appliances.

My only thought was to average the price premiums that public luxury brands in other industries receive and try to draw some conclusions. Unfortunately, using this method will be nearly impossible to separate the micro and macro characteristics that are also impacting the relative premiums/discounts.

Has anyone seen any research/reports that allude to valuation premiums for high end brands? Any ideas on how to pull this together.

Oh I also do not have access to anything sort of databases, no CapIQ or anything.

Thanks in advance.

14 Comments
 

robb report i think; i forget, been a long time since i did a deal like this

or look for this stuff in bain research; i know i used it in our cim, i just forget what exactly; like i said, it's been a long time, i wish i remembered exactly, sorry

i'll try to think in between work; if i come up with anything else, will let you know; strongly recommend bain research though, i remember using that alot

 
wallstreetguy25robb report i think; i forget, been a long time since i did a deal like this

it's been a long time, i wish i remembered exactly, sorry

Aren't you a prospective monkey? How many deals have you "done?"

How can you post threads asking questions on basic excel skills, how to look at 10-k, and then claim to have a year of TMT banking experience?

 

just one thing i happened to not know, and i don't think asking questions about 10Ks is silly either, as i doubt you're getting a job at tiger L/S equity anytime soon, hahaha; when you do, come talk to me

 
Best Response
wallstreetguy25just one thing i happened to not know, and i don't think asking questions about 10Ks is silly either, as i doubt you're getting a job at tiger L/S equity anytime soon, hahaha; when you do, come talk to me

hmmm...I count 3

wallstreetguy25how do you get into the name box?

1

wallstreetguy25i have copied a "Sheet A" from "workbook 1" into "workbook 2". workbook 1 has a cell named "value_begin". workbook 2 has a cell named the same thing, but sheet A is still referencing "value_begin" from workbook 1. how do i get it to reference the "value_begin" in workbook 2?

ANY help would be MUCH appreciated

2

wallstreetguy25without mouse, i mean; for instance, you have "sheet 1", "sheet 2", "sheet 3", and i want to delete "sheet 3" via keyboard only

3

 

3 things i didn't know, my bad, you really got me with that one; i guess i'm not a TMT banker interviewing for L/S equity jobs anymore

also, nystateofmind, hahaha...if you'll note, 1 and 2 are the same question with the same answer, i just forgot the answer; but i'm sure you knew that cause you are a first year analyst, right?

3 i honestly didn't know, and i guarantee if i stand up and ask everyone on the floor, most ppl will prob know, but there will be ppl who won't, cause it is kind of random; like referencing sheet names indirectly, using ADDRESS, and then vlookuping in them: chances are most analysts don't need to do this, so why would they know? but i do, just cause i've had to

 

i dont know why ppl bag on others here.... in any case, i've never had to delete a sheet via keyboard, but i did it after 15 seconds of just playing around in excel....

alt + i + w alt + e + L

 

DISCLAIMER: I am a BO Monkey and have not worked on any deals.

Can you establish some type of goodwill value to the brand itself...? Like an intangible asset?

  • Then determine the same value for similar super-premium good companies.
  • Come up with a floor discount rate that the firm should have irrespective of any brand value... maybe ALL other average Joe company discount rates
  • Take the difference of the floor discount rate and the average super-premium discount rates.
  • Determine a scaling metric, and back into a discount rate for your subject company.
 

this something you might be able to glean even from looking at an LVMH initiating report or something; i'm sure you prob tried that, but if you ahven't, i would give it a shot

 

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