Lovisa Holdings Limited

ASX:LOV

Lovisa Holdings Limited

ASX:LOV
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$27.19 (+1.4%)
Last close price
#67
Rank
14
Held by
39
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Reports (6) My Report Forum Investors
Forum Topics LOV LOV LOV valuation

Pinned valuation:
Magneto
Added one year ago
Justification

Assumption ~15% Revenue Growth next 5 years, Net Margin 15%, PE25 Discounted back giving 24.72. I used what I think are conservative numbers.
rh8178
Added one year ago

Hi Magneto,

I'm a shareholder in LOV IRL. Thanks for theval - I think you're right your net margin might be a bit conservative. There was a pretty big upfront cost to bringing on the new CEO this year (which I didn't love, but it is what it is). The CEO take should'nt be as high ongoing. If that's normalised I think net margin is a lot higher and val might pop out a bit higher. Long term LOV is a great business - high margins, high ROE, and lots of runway for expansion, smartly run with Brett Blundy still very interested. That Beeline acquisition is looking pretty cheap now I bet...

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Magneto
Added one year ago

Hi rh8178,

I did a whole range of assumptions but thought $24.72, was one that was conservative and safe to put out there. I had a valuation range of over $30 down to current price!!!

Hoping to start a position in IRL soon! Always thought was great business but never pulled the trigger!

Magneto


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wtsimis
Added one year ago

Entered into Lovisa today at $17.50.

I sense the valuation of Lovisa is being pulled down based on what may eventuate in terms of macro picture and discretionary spend over the next 18months.

Quality business and one that is presenting from a valuation perspective attractive when taking a 5yr plus period .

On 2023 earnings it is trading at 28 but as @Magneto outlined assuming a 15% revenue growth with 15% net profit margins and PE of 25-30 presents as a solid investment.

We may see further weakness but happy to monitor and keep adding at intervals when share price falls by 5% or more.

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