Reitmans Ord Shs V.RET

Alternate Symbol(s): RTMNF | RTMAF | V.RET.A

Consumer Cyclical Apparel Stores

Reitmans (Canada) Limited is a Canada-based specialty apparel retailer for women and men, with retail outlets throughout the country. The principal business activity of the Company is the sale of women’s wear. The Company operates three different brands: Reitmans, Penningtons and RW&CO. The Reitmans banner is a specialty fashion destination. The Reitmans has an online presence and store locations across the country. Penningtons is a destination for plus-size fashion, ranging from sizes 14 to 32. Penningtons operates stores across Canada, as well as an ecommerce site at penningtons.com. RW&CO. operates stores averaging 4,500 square feet in premium locations in shopping malls, as well as on their e-commerce site. Specializing in menswear and womenswear, the brand delivers versatile, well-crafted collections and brand experiences. It operates approximately 391 stores under three distinct banners consisting of 226 Reitmans, 85 Pennington, and 80 RW&CO.

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Reitmans Ord Shs > Remains Dirt Cheap

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Comment by Torontojayon Dec 16, 2023 1:55pm

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Post# 35788317

RE:Remains Dirt Cheap

There are several ways to look at valuations.

You can look at free cash flow to equity investors which is approximately $20m ytd. The other way is to look at free cash flow to the firm which includes equity investors and debt investors in the calculation. This is effectively,

operating income*(1-tax rate) =~ fcf to "the firm"

"the firm" = equity holders + debt holders

net income =~ fcf to equity investors

Since we subtracted the lease payments from the fcf to equity calculation, then it is best to compare fcf with market capitalization instead of enterprise value. If you're going to use fcf to the firm, then it is best to use enterprise value instead of market cap.