Pernod Ricard has pedigree in wine too.. their "premium" wine includes Jacobs Creek.
What I find strange is that they don't really have premium brands in liquor either. I definitely wouldn't consider Beefeat Gin, Malibu, Jamesons Whiskey or even Absoloute Vodka as premium - more likely to see them at schoolies than a wedding. And yet, they trade as if they are a premium brand.
No wonder they would like to get their mits on Penfolds, an actual premium brand. They are trading at 140 PE ratio currently. Admittedly they got hit hard in the earnings while price has remained high, so this is flattering them. But even if you look at their long term historical average, it's +40 with moderate growth. TWE is currently trading at 48 (a third of Pernod Ricard), but long term there <30 with higher growth (two thirds of Pernod Ricard). If they can snap up TWE, the re-rating of the Pernod Ricard share price will cover the cost of acquisition and then some.
But yes, I agree that LVMH or a company that commands a serious premium-brand PE rating would do even better.
TWE - Takover, page-12
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$12.02 |
Change
-0.020(0.17%) |
Mkt cap ! $9.814B | |||
| Open | High | Low | Value | Volume |
| $12.07 | $12.11 | $12.00 | $2.766M | 229.2K |
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| No. | Vol. | Price($) |
|---|---|---|
| 14 | 2805 | $12.02 |
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| Price($) | Vol. | No. |
|---|---|---|
| $12.03 | 1905 | 10 |
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