JC
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yes I agree
Of course I was being a bit simplistics, but I do mention projected or prospective grwoth rates as a reason for the multples or valuation.
Anyway, I think the real point is that there is a price for everything! I think being a private company is great...... there are many things that are more flexible as a private company but of course being public allows you to have a different source of financing.
I think by looking t the large numbers of private equity deals and LBO's etc that advantages do exist to provude a great product and run a great company.
........ if only I can buy a little slice of PP!!!!!!! what a dream!
if one were to buy patek the company ?
if one were to buy patek how much is the current value on the company ?
The cost to buy Patek Philippe ?? Why ... ??
I cannot even begin to think what i am capable of doing if i own this company, mind you buying it. Where would you begin ?? It will be very difficult to put a price tag on this company. The museum is practically priceless and all the watchmakers. I wouldn...
No offense but....
do you really think PP only cost 700 to 800 piece of sky-moon tourbillon? I bet you can check the value of the following two words "Coca Cola". Remember, just the brand name... Not their facilities, people, or physical asset.
value
Well, the question is not just how much they sell but how much money they make, i.e. profitability. As a broad brush, luxury brand companies sell at between 2-4 times the revenues they generate. Just broad brush of course, at the end of the day, you need ...
value...
So let's say PP makes 35,000 watches a year, average selling price of $10000 per watch (conservative, could be higher), you would expect at the top end (4 x revenues), around 1.4bn valuation. Very roughly of course.
396 million CHF
That is, the brand name ("Patek Philippe") only , according to Interbrand 2006 annuals (check interbrand.com). Assets and intellectual properties go extra, which certainly won´t come cheap. There you go. Cheers, Peter
Very interesting....
396m was for 2005. For 2006, it is 420m (according to interbrand.com). It is interesting to know that Nescafe is 15410m CHF in 2006!!! Wow...
see the brand name wise its pretty cheap :)
see its not really that much property and other things have to be sorted out thoug
Simple exercise
There have been mention of brand names, property, etc etc etc I do this for a living on the equity markets for a global investment bank and its all just about profitability and growth Someone mentioned Brand Name and Coca Cola. Did you know that Coca Cola...
Multiples
No the different multiples Coca Cola vs your "no brand names" are also a function of what the market perceives as growth prospects. Lower multiples might mean market perception of lower growth prospects, which would not be suprising for a company already ...
More than 1 billion CHF!
A few years ago,Mr.Stern were offered more than 1 billion CHF for PP&co.
well thats great but its still much less than a billion USD
well its still much less than a billion USD
According to my very simple logic... I think, IMHO, he means....
"A few years ago,Mr.Stern were offered more than 1 billion CHF for PP&co." and Mr. Stern refused it. So it *must* be *more* than 1 billion CHF. Of course, we need to know the source of this statement and what is the value of "more than 1 billion CHF" IMHO...
nice
My opinion about is (this is my job i m a Private Equity Player) that if you do not Know the real numebers you can not tell a reasonable price. In my opinion, but is just a feeling the price could be 1 or 1,5 bilion of euro more or less by GV