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Gildan Activewear Inc
TSX:GIL

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Gildan Activewear Inc
TSX:GIL
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Price: 79.21 CAD 0.38% Market Closed
Market Cap: CA$14.7B

EV/FCFF

28.8
Current
5%
More Expensive
vs 3-y average of 27.3

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
28.8
=
Enterprise Value
CA$19.3B
/
Free Cash Flow to Firm
$492.5m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
28.8
=
Enterprise Value
CA$19.3B
/
Free Cash Flow to Firm
$492.5m

Valuation Scenarios

Gildan Activewear Inc is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (27.3), the stock would be worth CA$75.1 (5% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-29%
Maximum Upside
No Upside Scenarios
Average Downside
21%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 28.8 CA$79.21
0%
3-Year Average 27.3 CA$75.1
-5%
5-Year Average 22.2 CA$60.88
-23%
Industry Average 21.1 CA$57.93
-27%
Country Average 20.4 CA$56.1
-29%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
CA
Gildan Activewear Inc
TSX:GIL
14.6B CAD 28.8 26.2
FR
LVMH Moet Hennessy Louis Vuitton SE
PAR:MC
225.7B EUR 17.2 20.8
FR
Hermes International SCA
PAR:RMS
170.1B EUR 38 37.6
KR
SBW
KRX:102280
235.5T KRW -632 676.8 -117 637.1
CH
Compagnie Financiere Richemont SA
SIX:CFR
88.7B CHF 24 23.7
FR
EssilorLuxottica SA
PAR:EL
84.8B EUR 25 36.6
FR
Christian Dior SE
PAR:CDI
77.8B EUR 7.1 17.2
IN
Titan Company Ltd
NSE:TITAN
3.9T INR 389.9 82.2
FR
Kering SA
PAR:KER
29B EUR 17.1 402.1
CN
ANTA Sports Products Ltd
HKEX:2020
227.9B HKD 10.6 15.3
US
Tapestry Inc
NYSE:TPR
29.2B USD 18.8 55.8
P/E Multiple
Earnings Growth PEG
CA
Gildan Activewear Inc
TSX:GIL
Average P/E: 71.8
26.2
44%
0.6
FR
LVMH Moet Hennessy Louis Vuitton SE
PAR:MC
20.8
11%
1.9
FR
Hermes International SCA
PAR:RMS
37.6
12%
3.1
KR
SBW
KRX:102280
Negative Multiple: -117 637.1 N/A N/A
CH
Compagnie Financiere Richemont SA
SIX:CFR
23.7
16%
1.5
FR
EssilorLuxottica SA
PAR:EL
36.6
26%
1.4
FR
Christian Dior SE
PAR:CDI
17.2
N/A N/A
IN
Titan Company Ltd
NSE:TITAN
82.2
32%
2.6
FR
Kering SA
PAR:KER
402.1
186%
2.2
CN
ANTA Sports Products Ltd
HKEX:2020
15.3
10%
1.5
US
Tapestry Inc
NYSE:TPR
55.8
107%
0.5

Market Distribution

In line with most companies in Canada
Percentile
67th
Based on 1 610 companies
67th percentile
28.8
Low
0 — 13.1
Typical Range
13.1 — 33.5
High
33.5 —
Distribution Statistics
Canada
Min 0
30th Percentile 13.1
Median 20.4
70th Percentile 33.5
Max 22 577.3

Gildan Activewear Inc
Glance View

Gildan Activewear Inc. is a textile and apparel company that has woven itself into the fabric of the North American wardrobe through strategic integration and efficient operations. Founded in Canada, the company has established itself as one of the leading manufacturers of everyday basic apparel, including T-shirts, socks, and underwear. Gildan's success lies in its vertical integration model, which allows the company to control nearly every aspect of production, from yarn spinning to finished garments. By doing so, it not only ensures consistent quality but also achieves significant cost efficiencies. The company leverages its large-scale, centralized manufacturing facilities, primarily based in locations like Honduras and the Dominican Republic, where labor costs are lower, making the production process both scalable and economically viable. At the heart of Gildan's business model is its diversified brand portfolio combined with a robust distribution network. It caters to a variety of markets, from wholesale distributors to screen printers and retailers, under its own labels and other well-recognized brands. The breadth of Gildan's product range and its keen focus on sustainability—through initiatives aimed at reducing water usage and emissions—contribute to its broader appeal in an increasingly eco-conscious market. Revenue streams are strengthened by its flexible manufacturing which allows for quick response to market trends and retailer demands. By maintaining a steady balance between cost-efficiency and quality assurance, Gildan not only secures its profitable foothold in the industry but also paves the way for sustainable growth amid the changing dynamics of the apparel business.

GIL Intrinsic Value
88.07 CAD
Undervaluation 10%
Intrinsic Value
Price CA$79.21
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