How Might Revlon’s Valuation Change Post The Elizabeth Arden Deal?

July 18th, 2016 by Trefis Team
+245.90%
Upside
3.90
Market
13.49
Trefis
REV: Revlon logo
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Revlon

Revlon has recently shown how, post the Elizabeth Arden deal, the role of fragrance in its category mix will increase from 4% to around 28%. This increased dominance of fragrance is expected to increase Revlon’s market share in the global antiperspirants, deodorants, and fragrance market.

rev frag market kas

We currently forecast Revlon’s market share in the global antiperspirants, deodorants, and fragrance category to rise marginally from 0.4% to 0.5% till the end of our forecast period. However, if Revlon’s market share increases after completing the acquisition of Elizabeth Arden, then the valuation for the company might rise significantly. In case Revlon’s market share rises to ~2% by the end of our forecast period, then Revlon’s stock price valuation might rise by as much as 35%.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Revlon