I would like to know, in your opinion, what is your rule of thumbs in determining whether a local apparel store with overseas expansion (i.e. such as Padini Holdings Bhd) is undervalued, fairly valued or overvalued using relative valuation models such as P/E ratio, PEG ratio, Price-to-sales and P/CF ratio?
I generally don;t invest in apparel business due to their fast changing trend in fashion which may cause them to obsolete if the company is not fast in spotting trend. Another risk for such business are their rental cost which are always increasing. If I may put into valuation, I prefer to buy a well known brand at PE12x or less
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