OPPapers.com

Columbia Sportswesr Valuation

Executive Summary
Investment Recommendation: Overvalued, Sell, 6/1/2007
COLM—NYSE (6/1/07): $68.81
52 week range: $42.85-70.93
Revenue (3/31-2007): $289,640,000
Market Capitalization: $2.5 Bil
Shares Outstanding: 36,300,000
3-month Avgerage
Daily Trading Volume: 206,306
Percent Institutional
Ownership: 39.00%
Book Value per Share: $20.9
ROE: 16.56%
ROA: 12.71%
Cost of Capital est. R2 Beta Ke
Estimated 1.83 13.99
3-Month .24 1.833
5-Month .241 1.833
2-Year .243 1.834
5-Year .244 1.835
10-Year .245 1.837
Kd: 6.68%
WACC: 12.14%
Altman z-Score
2002 2003 2004 2005 2006
6.13 6.25 6.28 5.52 6.08
EPS Forecast
2007 2008 2009 2010 2011
3.32 3.35 3.39 3.42 3.45
Ratio Comparison COLM TBL VFC
Trailing P/E 18.75 15.89 19.37
Forward P/E 19.12 15.98 19.6
PEG 2.41 1.71 1.76
P/B 2.97 9.95 3.21
Valuation Estimates
Actual Price (6/1/07):
Ratio Based Valuations
Trailing P/E 60.91
Forward P/E 59.98
PEG 43.70
P/B 70.82
P/EBITDA 43.45
P/FCF 46.15
EV/EBITDA 77.46
Intrinsic Valuations Actual
Free Cash Flows 40.87
Residual Income 20.89
LR ROE 22.90
AEG 16.12
Recommendation- Overvalued, Sell
Industry Analysis
Columbia Sportswear Company (COLM) is a U.S. company that
manufactures and distributes outerwear and sportswear. “Founded in 1938,
Columbia Sportswear Company has grown to one of the world’s largest
outerwear brands and the leading seller of skiwear in the United States.”
(www.columbia.com) Their products are grouped into five categories—(1)
outerwear, (2) sportswear, (3) footwear, (4) related accessories, and (5)
equipment. Columbia distributes its products to over 72 countries and 13,800
retailers worldwide. Its headquarters is located in Portland, Oregon, and they
currently employ over 2,800 workers. Columbia’s long-term goal is to “capitalize
on global market opportunities for each of [their] key product categories.”
Columbia Sportswear competes in the textile-apparel clothing industry. Its
main competitors are Timberland...