Valentino valued at around 4 billion euros

By

Dominique Muret

Published
Sep 15, 2017

Valentino grows ever stronger, establishing itself as a heavyweight in the luxury sector. The Roman fashion house has been experiencing exponential growth for the past few years, having almost tripled its turnover in four years, from 400 million euros in 2012 to 1.16 billion in 2016, while its value is estimated at around 4 billion euros, according to the Italian magazine MF Fashion. 

Taking into account predictions for 2017, with a rate of growth in sales and gross operating profit expected in the double digits – or an Ebitda increasing from the current 206 million euros to around 225-230 million – and applying a multiple around 15-17, usually used in the luxury sector, we come to a value of around 3.7 to 3.9 billion euros.

And it's an estimate that could be revised upwards, according to analysts. Suffice to say that it's a nice prospect for a possible entry to the stock market, and the Roman fashion house, previously listed at the Milan stock exchange from 2005 to 2007, is indeed hoping to return.

Valentino was acquired by Mayhoola, the investment firm belonging to the royal family of Qatar, for 720 million euros in 2012. Two years ago, the fund approached Rothschild concerning an entry into the stock exchange, looking to put 25 to 35 % of its capital on the market. At that time, at the end of 2015, the company was valued at around 2 billion euros. 

When the brand published its results in 2016, it stated of a potential stock exchange listing that "nothing was planned for 2017 and that the project would be reexamined in accordance with the more favourable market conditions".