DCF for Coach revisited

In my post DCF Analysis For Coach I opined that the the DCF value for Coach was $40.24. COH is trading above $50 now. I’m sure glad I didn’t buy a short-term put on this position! I think in the next year, the effect of higher labor costs in China and lower ASPs in emerging markets (where their sales are growing) will cause the gross margins to decrease.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: