Versace: A $2.1 BN Price Tag for $17.5 MN of Profits

An article in the WSJ highlighted several metrics and recent transactions suggesting the top is near:

“Then there’s Michael Kors Holdings ’s deal to buy Italian fashion house Gianni Versace. Clearly Versace’s brand is valuable, but Kors is paying $2.1 billion for a company that generated €15 million [$17.5 million] in profit last year.”

“The stock market is also crying top. The cyclically adjusted price-to-earnings ratio popularized by economist Robert Shiller is 33.4. That is its highest level ever outside of the dot-com bubble years, when it reached 44.2, and well above its 2007 high of 27.5.”

fashion economics valuation
Source: Justin Lahart | "Blockbuster Deals and Stock Market Records Are Signs of a Top" | 09/28/2018 | Visit