Equity valuation of Crocs, Inc.

Abstract

This dissertation conducts an equity valuation of Crocs, Inc., an American footwear company, that focuses on casual footwear and is known for its iconic clogs. The purpose of this study is to determine the fair value of Crocs, Inc.’s share price as of 31 December 2024 and to provide an investment recommendation. The valuation is based on an extensive company, market, and industry analysis. It utilizes the discounted cash flow method, the adjusted present value method, and the relative valuation method using EV/EBITDA and P/E multiples. The target share price of this analysis amounts to $167, which represents an upside potential of 50% compared to the current share price of $111 as of 17 December 2024. Accordingly, this study issues a <Strong Buy= recommendation. A comparison with the investment bank report of Stiefel reveals a target price of $158, representing an upside potential of 11% as of 22 August 2024 and a corresponding <Buy= recommendation. The findings of this study show a beneficial risk-reward profile for Crocs, Inc., which is primarily driven by Crocs’ international expansion, its solid revenue base in North America, and HEYDUDE’s medium to long-term potential.

Date of Award	4 Feb 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)