Tupperware Brands: Stock Analysis and Valuation

Tupperware Image
When my sister in law became Tupperware's member recently and shared some of the business dynamics, and internals of the company I got so thrilled that I immediately bought $200 worth of products and went on to search if it is listed on Indian bourses. I found it listed in U.S markets as TUP and already hitting 52 week high. 

What struck me most is the Return on Equity that company is generating which is north of 70%. Tupperware has huge potential in India and other emerging economies as their products have become quite affordable in these economies due to rising per capita income. 

Tupperware Brands Corp Stock Price Chart

As on 12th Aug 2013 the stock of Tupperware Brands Corp closed at $87.50 and had a market value of $4.7 billion. At this price the stock is trading at a PE multiple of around 16 times based on $5.5 estimated EPS for the year ending Dec 2013. 

The multiples are not very cheap but in the context of expected double digit growth in revenues and superior return ratios, the stock is expected to continue to command higher multiples going forward. The stock is a strong portfolio candidate on any correction with a price target of $100 in 12 to 15 months.

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