Valuation Analysis of PVH and VSTO

I did a value analysis on a couple of stocks that stood out to me as having potential from a value screen I ran recently. When I run a value screen I require P/B of 2 or less, P/S of 3 or less and PEG under 2. After that I further screen for ROE of at least 10%. VSTO caught my eye because the value numbers looked pretty good and PVH jumped out at me because the value ratios look good in addition to the stock being in an uptrend which means to me that the market may be starting to see the value of PVH.

VSTO is consumer discretionary leisure products. Vista Outdoor Inc. is a designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets. The Company operates through two segments: Shooting Sports and Outdoor Products. The Company's Shooting Sports segment designs, develops, produces and sources ammunition and firearms for the hunting and sport shooting enthusiast markets, as well as ammunition for local law enforcement, the United States Government and international markets. The Company's Outdoor Products segment product lines include archery/hunting accessories, global eyewear and sport protection, golf, hydration products, optics, shooting accessories, tactical products and water sports. The Company serves the outdoor sports and recreation markets through a diverse portfolio of over 40 brands. It serves a range of end consumers, including outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals.

Fair value estimate on VSTO is 39.50 which is right at it's current selling price on September 22, 2016. Using CAPM method of calculating a margin of safety under current growth metrics I came up with a projected 10 year Margin of Safety of 52% and projected price of 82.55. Eight analysts have analyzed with 4 strong buys, 2 buys and 2 holds with an average price target of 52.

PVH is consumer discretionary apparel & luxury goods. PVH Corp. is an apparel company. The Company's segments include Calvin Klein North America; Calvin Klein International; Tommy Hilfiger North America; Tommy Hilfiger International; Heritage Brands Wholesale, and Heritage Brands Retail. The Company's brand portfolio consists of various brand names, including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner's, Olga and Eagle, which are owned, and Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection and Chaps, which are licensed, as well as various other licensed and private label brands. The Company designs and markets dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products and handbags, footwear and other related products, and licenses its owned brands over a range of products. The Company sells its brands at multiple price points and across multiple channels of distribution and geographies.

Fair value estimate on PVH is 115 and price today on Sept 22, 2016 is 108.90. Using CAPM method of calculating a margin of safety under current growth metrics I came up with a projected 10 year Margin of Safety of 41.6% and projected price of 186.74. 16 Analysts have analyzed with 2 strong buys, 9 buys, 4 hold and 1 sell with an average price target of 118.

Here's some of my work and reference material:

Workshop Reduction Calculator Spreadsheet

VSTO Report

PVH Report

 

Thanks for that Link. It will take me some time to explore but it looks really nice. Could save me a lot of work