2 models fit Coty Inc. Class A Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Silver70
Valued as a mature, profitable company: Discounted cash flow and P/E comparison.
ACCE opinionCoty Inc. Class A Common Stock (COTY)
Fair value (2 models)
$4.75
ACCE price target
$2.90
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 12:04 CEST; previously $4.89 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 12:04 CEST.
Price used: $3.23 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
32.0% below
+47.2% to fair value
ACCE score
47
out of 100
Analysts
0% buy
17 covering
P/E
0.0x
forward 9.0x
1-year return
-21.6%
Dividend yield
0.00%
Coty Inc. Class A Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Coty sells fragrances (Burberry, Gucci and Calvin Klein licences among them), colour cosmetics such as CoverGirl and Rimmel, and skin and hair care, with the bulk of revenue coming from prestige and mass fragrance. Its case rests on a 62.9% gross margin, which says the brands still command pricing, and on a forward P/E of 7.9 against a trailing P/E of zero, a gap that reflects a loss-making year rather than a cheap earnings base. Revenue growth of 1.3% and a -2.4% operating margin mean the thesis depends on cost actions and portfolio simplification, including the disposal of non-core brands and the reduction of debt, converting into operating profit. The stock is interesting now only as a turnaround test: the valuation looks undemanding if management delivers margin recovery, but the -16.1% return on equity and the absence of index membership show the market has not yet been persuaded, so this merits a deeper look at the balance sheet and the cadence of margin repair before any position is considered.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Negative operating and net margins
Operating margin is -2.4% and net margin -10.4%, with ROE at -16.1%. Earnings fell 22.2% year over year, so the business is currently losing money at the bottom line.
moderate
Leverage with thin equity
Debt/Equity of 1.10 is high for a company with negative returns on equity, leaving less cushion if revenue growth of 1.3% stalls further.
moderate
Elevated short interest
Short interest stands at 10.8% of float, indicating meaningful bearish positioning that could amplify volatility around earnings or news.
AI research notes
AI-assisted·How I use AIWritten Oct 14, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $348M, and the stock's free cash flow yield is 13.6%.
Revenue has grown 4.6% a year on average over five years, so the business has expanded over time.
At a forward P/E of 7.9x, the shares are priced low relative to expected earnings.
Why it could disappoint
The company is losing money, with a net margin of -10.4% and a return on equity of -16.1%.
Not one of 17 analysts rates the stock Buy or Strong Buy, and their mean price target of $2.64 sits below the $2.95 share price.
Debt is high at 1.10 times equity, and the latest quarter missed earnings expectations by -100.0%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where COTY's valuation models land
Price
$3.23
Model fair value
$4.75
Model range
$3.46 to $6.05
Fair value $4.75
Price $3.23
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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