Publicação
Equity Valuation of Crocs Inc.
| Resumo: | This dissertation presents an equity valuation of Crocs Inc., a globally operating American footwear manufacturer. The motivation stems from three connected factors. First, the strategic and financial consequences of the HEYDUDE acquisition. Second, the tariff announcements implemented during the Trump administration. Finally, the goodwill impairment charge taken in the third quarter of 2025, related to the HEYDUDE segment. The primary valuation methodology is a discounted cash flow (DCF) model based on Free Cash Flow to the Firm (FCFF), discounted at the Weighted Average Cost of Capital (WACC). Complementary Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA) were carried out to evaluate market outlook, though these proved less informative. Every valuation is conducted as of February 20, 2026. The combined analysis suggests a "Hold" recommendation, with a target share price of USD 113.41. This figure indicates a 13.37% premium compared to the market price at the time of the valuation. The apparent market undervaluation is mainly attributed to uncertainty about tariff exposure, given Crocs' significant reliance on Asian manufacturing, and the publicly documented deterioration of the HEYDUDE brand. |
|---|---|
| Autores principais: | Schlüter, Tim-Moritz |
| Assunto: | Crocs Inc. HEYDUDE Footwear industry Trariffs Equity valuation Discounted cash flow CCA CTA Sensitivity Indústria do calçado Direitos aduaneiros Avaliação do capital próprio Fluxo de caixa descontado Sensibilidade |
| Ano: | 2026 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Católica Portuguesa |
| Idioma: | inglês |
| Origem: | Veritati - Repositório Institucional da Universidade Católica Portuguesa |
| Resumo: | This dissertation presents an equity valuation of Crocs Inc., a globally operating American footwear manufacturer. The motivation stems from three connected factors. First, the strategic and financial consequences of the HEYDUDE acquisition. Second, the tariff announcements implemented during the Trump administration. Finally, the goodwill impairment charge taken in the third quarter of 2025, related to the HEYDUDE segment. The primary valuation methodology is a discounted cash flow (DCF) model based on Free Cash Flow to the Firm (FCFF), discounted at the Weighted Average Cost of Capital (WACC). Complementary Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA) were carried out to evaluate market outlook, though these proved less informative. Every valuation is conducted as of February 20, 2026. The combined analysis suggests a "Hold" recommendation, with a target share price of USD 113.41. This figure indicates a 13.37% premium compared to the market price at the time of the valuation. The apparent market undervaluation is mainly attributed to uncertainty about tariff exposure, given Crocs' significant reliance on Asian manufacturing, and the publicly documented deterioration of the HEYDUDE brand. |
|---|