Veste S.A. Estilo is a Brazilian company that specializes in high-end apparel and accessories. The company manages a portfolio of brands including Le Lis, Dudalina, John John, BO.BO and Individual, with Le Lis the most representative in terms of sales. Its business model is multichannel, encompassing direct to consumer (B2C) sales through its own physical stores and digital platforms, such as websites and apps. Veste also operates in the B2B (wholesale) segment, using a digital platform to provide products to multi-brands. The physical chain consists of its own stores and a growing number of franchises, focusing on expanding the Dudalina brand in this format. The company uses outlet channels, operated under the “Stock” flag, as a complementary way to sell products. The operating structure also includes the use of its own factory for part of John John's production.
Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet.
The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It's also called the enterprise value-to-sales multiple.
The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company's cash earnings less non-cash expenses. It's best to use the EV/EBITDA metric when comparing companies within the same industry or sector. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.
It follows the same logic as the EV/EBITDA indicator, but instead of EBITDA, EBIT is used, which considers non-cash D&A expenses in the company's operating result.
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