Levi Strauss & Co. (LEVI), mcap=$7.7bn, price $19.38 vs $17.13

– Revitalized denim brand and successful turnaround under 10-year tenure of current CEO.
– COVID beneficiary, but operational/margin improvements achieved before and during the pandemic are expected to be sustained going forward.
– Trades at 7.3xEBITDA, a discount to precedent branded apparel transaction, when a premium should be expected.
– Optionality from strong balance sheet with recent buyback authorization for 11% of market cap.

– Trades at 7.3x ’22 EBITDA of $1bn.
– Precedent transactions have taken place at 11xEBITDA.
– $LEVI should command a premium valuation to these transactions.

Exp. gain: Not specified

Full $LEVI write-up (free guest account required):

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