Pandora A/S: Fundamental Valuation

Ticker(s) included: $PNDZF, $PANDY (ADR); References: Annual Report 2017; CMD 2018; 2018 Q1


  • Shares of Pandora A/S ($PNDZF) lost more than 50% (in EUR) since May 2016
  • I performed a conservative DCF valuation, based on recently provided guidance
  • Based on this valuation, Pandora appears undervalued to me

Business Overview

Pandora A/S ($PNDZF) is a Danish international jewelry manufacturer and retailer. Pandora is well known for its customizable charm bracelets. The production takes place in Thailand.


Pandora managed to grow Revenue & EBITDA figures (in DKK) from 2013 to 2017 at a high pace. Both Financial KPIs more than doubled in that timeframe. EBITDA Margin also increased during this period from 32.0% in 2013 to 37.3% in 2017. Over the years one can observe a flattening of the Revenue Curve. I like to note that such a development is quite usual, because to grow revenues at a certain level becomes more and more difficult in relative terms, as the business, read denominator in a mathematical sense, is growing (matures). For a comprehensive view of the most important Financial KPIs / Highlights for the period 2013-2017, please see below for page 10/117 of the 2017 Annual Report below….

Please find the complete analysis as pdf document here:


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