Nowadays, fast fashion along with social media have allowed individuals to start their apparel brand and take off.
Many individuals are growing their apparel companies like crazy and selling them to large brands.
This has propelled the need for apparel companies valuation.
My analysis looks at 390+ publicly-traded apparel companies. The results are the valuation multiples that can be used as reference to value apparel companies.
Without further ado, let’s get right into it.
Apparel Companies Valuation
Valuation Multiples – All companies in the dataset
Out of 390+ companies, the average revenue multiple is 0.8x and the median revenue multiple is 0.7x.
The average EV/EBITDA multiple is 8.9x and the median EV/EBITDA multiple is 8.6x.
The average PE multiple is 12.4x and the median PE multiple is 10.9x.
Valuation Multiples – Apparel companies
Out of 230+ companies, clothing companies have an average revenue multiple of 0.8x.
The average EV/EBITDA multiple for clothing companies is 8.6x.
And the average PE multiple for clothing companies is 12.2x.
Valuation Multiples – Accessories companies
There were 110 accessories companies in the data set.
The average revenue multiple is 0.8x.
The average EV/EBITDA multiple is 8.8x.
And the average PE multiple is 11.4x.
Accessories companies’ valuation multiples did not vary very much compared to clothing companies.
Valuation Multiples – Jewelry companies
Out of 106 jewelry companies, the average revenue multiple was also the same at 0.8x.
The average EV/EBITDA multiple is slightly higher with 10.3x and the average PE multiple is also slightly higher with 13.7x.
Valuation Multiples – Footwear companies
Out of 55 footwear companies, the average revenue multiple is slightly higher at 0.9x.
The average EV/EBITDA multiple for footwear companies is 9.4x.
The average PE multiple is 12.8x.
Valuation Multiples – Handbag companies
Finally, there were 53 handbag companies in the data set.
The average revenue multiple is similar at 0.9x.
The average EV/EBITDA multiple is 8.3x.
The average PE multiple is 11.5x.
Apparel Companies Margins
Let’s look at the margins of apparel companies and if they differ based on sub-category.
Margins – All companies in the data set
Out of 390+ companies, the gross margin for apparel companies is on average 38% and the median is 39%.
The operating income margin (or EBITDA margin) is on average 11% and median 10%.
The average and median net profit margin is 5%.
Valuation Multiples – Clothing companies
Out of 230+ clothing companies, the average gross margin is 42%.
The average EBITDA margin for clothing companies is 11%.
The average net profit margin for clothing companies is 5%.
Valuation Multiples – Accessories companies
Out of 110 accessories companies, the average gross margin is 47%.
The average EBITDA margin for accessories companies is 13%.
The average net profit margin for accessories companies is 5%.
Valuation Multiples – Jewelry companies
Out of 100+ jewelry companies, the average gross margin is 35%.
The average EBITDA margin for jewelry companies is 10%.
The average net profit margin for jewelry companies is 4%.
Valuation Multiples – Footwear companies
Out of 55 footwear companies, the average gross margin is 39%.
The average EBITDA margin for footwear companies is 12%.
The average net profit margin for footwear companies is 5%.
Valuation Multiples – Handbag companies
Out of 50+ handbag companies, the average gross margin is 46%.
The average EBITDA margin for handbag companies is 12%.
The average net profit margin for handbag companies is 6%.
How To Use Valuation Multiples To Value a Company
For those who are not familiar with using valuation multiples to value companies, I wrote posts detailing exactly how you can do that.
Hopefully you can use them as helpful guides. Click on the link below to go to the post.
- How to value a company based on revenue
- How to value a company based on EBITDA
- How to value a company based on earnings
- How to find your own valuation multiples
- Other posts on how to value a company
Download Data Set
To download the 390+ companies data set in this analysis, enter your email address below to sign-up for the mailing list and the data set will be sent to your email directly. In some cases, it takes a few hours or a day to receive the email with the data set.
(I have never sent an email to the mailing list, but I may in the future, who knows. But the reason for mailing it directly is because if you can download it with a click of a button, the internet bots go nuts.)
Thanks for reading as always and leave a comment if you found it useful!
