First Thoughts on Short Report - Channel Checks Don't Substantiate Findings

Research evidence excerpt

First Thoughts on Short Report - Channel Checks Don't Substantiate Findings

TD Cowen Gildan Activewear Inc.

Global Research June 17, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Consumer Discretionary

Our valuation methodology is primarily based on Price-to-Earnings (P/E) but we may

alternatively employ a Sum of the Parts ("SOTP") valuation where appropriate. This is

supplemented by, in some cases, Enterprise Value to EBITDA (EV/EBITDA), Price-to-Free Cash

Flow (P/FCF) ratios, and DCF analysis. We incorporate the company’s and its peers’ historical

and current valuation multiples, as well as our analysis of future growth rates, company-

specific risks, return on invested capital, and other inputs from our research when devising our

valuation multiples and the probabilities we assign to different scenarios when developing our

price targets.

Investment Risks

Risks to the companies in our sector include risks and uncertainties associated with the global

economic environment and consumer spending, as well as competition within consumer

and fashion products industries and fluctuating consumer demand trends, which can create

variability in sales and margins. Increases in the prices of raw materials, rent, freight, labor,

tariffs, or manufacturers’ inability to produce goods on time or to specifications may negatively

impact results. Execution flaws and the departure of certain key executives may negatively

affect performance and financial results. Legal, regulatory, political, currency, and economic

risks, as well as challenges to maintain favorable brand recognition, loyalty, and reputation for

quality, may affect the ability to conduct business in both domestic and international markets.

Risks To The Price Target