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29-11-2012, 11:02 AM
What has always intrigued me about luxury watches is the P/E they are trading at.
HrGlass is trading at 6.7x TTM P/E, while Cortina is at 7.4x.
Over at HK, Sincere is at 7x while Oriental is at 10.7x.
Probably Oriental has something which warrants the premium but it seem that the average is around 6 to 7x. I supposed the discount is largely due to the luxury factor in holding more inventory and probably due to illiquidity issue in their trading.
How much will you pay? 10x? 12x? I think it matters because luxury consumption is after all cyclical as well.
HrGlass is trading at 6.7x TTM P/E, while Cortina is at 7.4x.
Over at HK, Sincere is at 7x while Oriental is at 10.7x.
Probably Oriental has something which warrants the premium but it seem that the average is around 6 to 7x. I supposed the discount is largely due to the luxury factor in holding more inventory and probably due to illiquidity issue in their trading.
How much will you pay? 10x? 12x? I think it matters because luxury consumption is after all cyclical as well.