Michael Kors remains a powerful business model.
The stock has plummeted due to an overreaction by investors.
My conservative DCF model demonstrates that the stock is currently undervalued.
Michael Kors (NYSE:
Figure 1 -
The largest company source of revenue is North America, which accounts for 78% of global total income.
Michael Kors's largest competitors are Coach (NYSE:
KORS has 193.42M shares outstanding trading at a historically low P/E ratio of x10.1. The company's market cap is $8.26B. The current KORS stock price is $40.07.
Why Michael Kors is a powerful business?
Brand power - KORS's recent increase in number of stores leaves some people wondering how the company will maintain a balance between exclusiveness and accessibility. In a recent survey, I asked a group of 15 women between the ages of 20 and 30 what they prefer, a day in a Michael Kors store, Coach Store, Bebe store, Ralph Lauren store or Guess store. 13 out of 15 women preferred KORS. The other two preferred a day in a Guess store. The survey results might show how the brand is doing in the mind of a fashion group of women. As mentioned in