European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>WOSG has returned to 685p after July’s takeover interest pushed the shares to 801.5p. Reported discussions involved both private equity and strategic buyers.</li>
<li>Our reverse-LBO suggests 750–800p is the credible PE range: 800p generates an 18.5% five-year IRR, while 850p cuts the return to 15.5%.</li>
<li>Higher leverage or an eight-year hold does not bridge the valuation gap. A strategic buyer could pay more, although watchmaker ownership risks conflicts with WOSG’s other suppliers.</li>
</ul>


WOSG has returned to 685p after July’s takeover interest pushed the shares to 801.5p. Reported discussions involved both private equity and strategic buyers.
Our reverse-LBO suggests 750–800p is the credible PE range: 800p generates an 18.5% five-year IRR, while 850p cuts the return to 15.5%.
Higher leverage or an eight-year hold does not bridge the valuation gap. A strategic buyer could pay more, although watchmaker ownership risks conflicts with WOSG’s other suppliers.


Watches of Switzerland: Where Does PE Stop?

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Watches of Switzerland / Equity Bottom-Up

<ul>
<li>
Privileged Rolex distribution. <a href="https://www.smartkarma.com/entities/watches-of-switzerland-group-plc" target="_blank" data-smartkarma-citation="entities:34600:1" rel="noopener">Watches of Switzerland (WOSG LN)</a> is one of Rolex's most trusted retailers since 1919, with no online or price competition, no inventory risk, and pre-sold demand.</li>
<li>
The US is &gt;50% of group revenues.  US revenue grew 24% to $1.24bn in FY26, past 50% of sales in eight years, with a long runway as Rolex lifts production.</li>
<li>
 Cheap for the growth.  The shares trade at 8.2x FY26 EV/EBITDA and 18.2x P/E, with mid-teens ROCE, double-digit growth, and a return to net cash.</li>
</ul>



Privileged Rolex distribution. Watches of Switzerland (WOSG LN) is one of Rolex's most trusted retailers since 1919, with no online or price competition, no inventory risk, and pre-sold demand.

The US is &gt;50% of group revenues.  US revenue grew 24% to $1.24bn in FY26, past 50% of sales in eight years, with a long runway as Rolex lifts production.

 Cheap for the growth.  The shares trade at 8.2x FY26 EV/EBITDA and 18.2x P/E, with mid-teens ROCE, double-digit growth, and a return to net cash.


Watches of Switzerland (WOSG LN: Rolex-Anchored Compounder Scaling in the US At 8.2x EV-EBITDA

Director, Head of Research, Smartkarma

Pranav Rao

Director, Head of Research

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
<li>Welcome to Curator’s Cut - a fortnightly roundup of standout themes from the 1,400+ insights shared on Smartkarma.</li>
<li>In this cut, we look at where value remains in a difficult year for luxury, review momentum in offshore services, and assess two sides of the insurance sector. </li>
<li>Want to dig deeper? Comment or message with the themes you'd like to see highlighted next.</li>
</ul>


Welcome to Curator’s Cut - a fortnightly roundup of standout themes from the 1,400+ insights shared on Smartkarma.
In this cut, we look at where value remains in a difficult year for luxury, review momentum in offshore services, and assess two sides of the insurance sector. 
Want to dig deeper? Comment or message with the themes you'd like to see highlighted next.


Curator's Cut: Luxury Losing Lustre, Offshore Revived & Insurance's Two Sides

<ul>
<li>This follows up on our piece, <a href="https://www.smartkarma.com/insights/ticking-different-a-comparison-of-the-world-s-listed-luxury-watch-retailers-with-exposure-to-rolex" target="_blank" data-smartkarma-citation="insights:241854" rel="noopener">Ticking Different: A Comparison of the World's Listed Luxury Watch Retailers With Exposure to Rolex</a>, where we follow five listed luxury watch retailers.</li>
<li>This is an update on the names as well as a valuation pit stop, heading into the earnings season for a few of the March-end companies </li>
<li>We like <a target="_blank">Oriental Watch (398 HK)</a> for its net cash position (~60% of market cap) and 12% dividend yield, and <a target="_blank">The Hour Glass (HG SP)</a> for its buybacks and superior metrics.</li>
</ul>


This follows up on our piece, Ticking Different: A Comparison of the World's Listed Luxury Watch Retailers With Exposure to Rolex, where we follow five listed luxury watch retailers.
This is an update on the names as well as a valuation pit stop, heading into the earnings season for a few of the March-end companies 
We like Oriental Watch (398 HK) for its net cash position (~60% of market cap) and 12% dividend yield, and The Hour Glass (HG SP) for its buybacks and superior metrics.


Timeless: A Follow-Up on the Luxury Watch Retailer Space And Their Impressive Capital Allocation

Independent in-depth research from Finimize, Finimize

Finimize Research

Independent in-depth research from Finimize

Finimize

Finimize is the #1 information platform for modern investors. We empower people to become smarter investors with bitesize insights from world-class analysts. 1 million+ strong community, 250 partners.

Thematic (Sector/Industry)

<ul>
<li>The US economy’s resilience hasn’t come from the many – it’s come from the top 10% as the “wealth effect” from rising asset prices has boosted spending.</li>
<li>But it works in reverse too.  Since the richest make up nearly half of America’s consumer spending, that could lead to a serious economic fallout.</li>
<li>It’s worth considering protecting your portfolio. I’ve pulled together one list of companies that should do well and another that could suffer from the change in climate.</li>
</ul>


The US economy’s resilience hasn’t come from the many – it’s come from the top 10% as the “wealth effect” from rising asset prices has boosted spending.
But it works in reverse too.  Since the richest make up nearly half of America’s consumer spending, that could lead to a serious economic fallout.
It’s worth considering protecting your portfolio. I’ve pulled together one list of companies that should do well and another that could suffer from the change in climate.


A Defensive Portfolio Prepared For The Wealth Effect’s Reversal

United Kingdom

Watches of Switzerland is an international retailer specializing in luxury watches and fine jewelry. The company operates a network of multi-brand showrooms and mono-brand boutiques, complemented by a robust online presence. It was founded in 1924 and is headquartered in Leicester, United Kingdom.

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Watches of Switzerland (WOSG LN)

Watches of Switzerland: Where Does PE Stop?

OSG’s takeover premium has unwound. We revisit the reported bid interest and use a reverse-LBO to test what PE could pay—and where strategic buyers...

Jesus Rodriguez Aguilar