Check-In On Early Estates Progress

Research evidence excerpt

Check-In On Early Estates Progress

TD Cowen RH

Global Research July 14, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Luxury Brands:

Our valuation methodology is primarily based on Price-to-Earnings (P/E), followed by Enterprise

Value to EBITDA (EV/EBITDA), Price-to-Free Cash Flow (P/FCF) ratios, and DCF analysis. We may

also use Enterprise Value to Revenue (EV/Revs) for companies operating at depressed levels

of profitability. In some cases we use probability weighed, scenario-based decision trees as

a basis for devising our price targets. 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.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

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 general competition within the

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