Relative valuation of Tiffany & Co.

Abstract

This thematic paper shows instinct value of the stock price of Tiffany & Co. using relative valuation methods, ratio bands and peer group multiples. The calculated reasonable target share price of company help investor to decide whether to buy/hold/sell the company’s stock. Tiffany is the mono jewelry brand provided in more than 326 stores over the Americas, Europe, Asia-Pacific, Japan, and other geographic segments. It offers the following product categories: engagement and designer jewelry, jewelry collection, watches, home and accessories products, and fragrances. This well-known company continue growth during the past 5 years. Tiffany has a huge customer on hand and wide types of target customers. The high value of brand attractive the LVMH to merge with for expand the high-end jewelry section of LVMH. The value of the TIF share price is 57.97 lower than Tiffany's current price at 131.2 by 55.80%. The relative valuation recommends to “Sell” because the investor better should take advantage of the 131.2 price, which is high due to the 131.5 LVMH offer.