Using the industry peer median P/E multiple (trailing + forward), Ulta Beauty, Inc. (ULTA) has a fair value of $494.00 based on 5 comparable companies in the Specialty Retail industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Ulta Beauty, Inc.ULTA | 23,579 | 20.4x | 18.4x |
| Tractor Supply CompanyTSCO | 24,083 | 22.2x | 21.0x |
| Darden Restaurants, Inc.DRI | 23,185 | 22.5x | 18.8x |
| PulteGroup, Inc.PHM | 22,574 | 10.6x | 8.7x |
| Williams-Sonoma, Inc.WSM | 21,539 | 20.4x | 21.4x |
| Best Buy Co., Inc.BBY | 13,220 | 12.5x | 9.7x |
| Industry Median | 20.4x | 18.8x | |
| (*) Profit after tax | 1,153 | 1,284 | |
| Equity Value | 23,542 | 20,909 | |
| (/) Outstanding shares | 45 | 45 | |
| Fair Price | $523 | $465 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.