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Estimate of the Intrinsic value price of a Boohoo Share.

1) 5 year EPS growth rate estimate from yahoo finance (analysis page) is 29.9% per year. From the balance sheet we can see that equity has grown from £85.5million in 2015 to £569 million in 2020. That is 46% per year compounded growth.

2) The 5yr historic PE from MSN Money price ratios is High of 70.86 and low of 37.69 is 52.7 average.

3) Last EPS was 5.3p x 30% growth rate 1.3 x 10 yrs = 69p. Therefore the estimated EPS is 69p in 10yrs.

4) The earnings per share of 0.69p x the future PE of 52.7 gives a share value in 10 yrs of £35.88.

5) If you take 15% profits year on year from this sum you achieve a current fair price of £7.71

6) discount this by 50% for a margin of safety purchase price of £3.85. Basically you can buy Boohoo shares all the way up to £3.85 and still get a fantastic bargain.

I have run this calculation on a multitude of companies, and none meet the criteria.

If you can find any companies with a solid history of exceptional trading like Boohoo that have lost substantial value through no real fault then please let me know of them.

I invested £100,000 in Boohoo shares in 2015. I have held them through every up and down. They are now worth nearly £1.3m. I research Boohoo on a regular basis. I will be keeping my Boohoo shares for many years to come.

Mahmud Kamani has never owned 60% of shares in Boohoo. Mahmud Kamani has more money invested in Boohoo shares than he sold. Mahmud Kamani would never let Boohoo fail. It is his passion, hence why it will continue to grow and grow.

Premier Foods use their free cash flow to pay down debt.

Boohoo have no debt and use their free cash flow to grow the business.

Boohoo bought US business Nasty Gal for £20 million and have grown it into a £100m revenue in less than two years.

Boohoo bought two thirds of Prettylittlething for less than £3 million. Boohoo paid a fair price for the remaining one third of Prettylittlething. Prettylittlething had grown to £500m revenue when Boohoo bought the last third of it and so it paid a fair price for it.

Boohoo Group own 15 Brands. These are Boohoo, BoohooMan, Nasty Gal, Prettylittlething, MissPap, Karen Millen, Coast, Oasis, Warehouse, Burton, Dorothy Perkins, Wallis, Debenhams, Maine New England, Mantaray.

Mr.neutral, I agree wholeheartedly too.

You can't base what will happen post results on the past year. The past year was about the supply chain issues. This affected the post results in the past year.

Sentiment for Boohoo shares looks to be changing and things may well be different post results this time around.

Kallumama - I invested £100,000 in Boohoo shares in 2015. I have held them through every up and down. They are now worth nearly £1.3m. I research Boohoo on a regular basis. I will be keeping my Boohoo shares for many years to come.

Mahmud Kamani has never owned 60% of shares in Boohoo. Mahmud Kamani has more money invested in Boohoo shares than he sold. Mahmud Kamani would never let Boohoo fail. It is his passion, hence why it will continue to grow and grow.

Premier Foods use their free cash flow to pay down debt. Boohoo have no debt and use their free cash flow to grow the business.

Boohoo bought US business Nasty Gal for £20 million and have grown it into a £100m revenue in less than two years.

Boohoo bought two thirds of Prettylittlething for less than £3 million. Boohoo paid a fair price for the remaining one third of Prettylittlething. Prettylittlething had grown to £500m revenue when Boohoo bought the last third of it and so it paid a fair price for it.

Please do some proper research instead of spouting rubbish on here about Boohoo.

Gosh, my stalkers must be really worried about the Boohoo share price going up.

Up, up and away.

Paul Scott was a Director of Finance for a UK Fashion Company before he left to become a private investor and write for the likes of the Small Cap Value Report on Stockopedia.

Here is what he said about Boohoo yesterday:-

"In my view this share is the ultimate coffee can share - it's my biggest personal portfolio holding, and I intend holding forever.

It's already more than 10-bagged from the lows a few years ago, and I think the almost infinitely scalable business model, combined with incredibly hard-working and ambitious management with plenty of skin in the game, should be a winning formula for investors.

Could it 10-bag again from here, to make a >100 bagger in total?

Yes, I think so, taking a say 10-15 year view."

Kallumama - please do some research on Boohoo instead of spouting rubbish on the Boohoo chat board.

If you did some proper research on Boohoo you'd see they're at least a ten bagger from here.

Paul Scott was a Finance Director of a UK Fashion Company before leaving to become a personal investor and write for the likes of the Small Cap Value Report on Stockopedia.

Here is what he has to say about Boohoo Group's Property Acquisitions:-

In my view this share is the ultimate coffee can share - it's my biggest personal portfolio holding, and I intend holding forever.

It's already more than 10-bagged from the lows a few years ago, and I think the almost infinitely scalable business model, combined with incredibly hard-working and ambitious management with plenty of skin in the game, should be a winning formula for investors.

Could it 10-bag again from here, to make a >100 bagger in total?

Yes, I think so, taking a say 10-15 year view.

Mudis - I would imagine if Boohoo wish to sell it, it will be sold to the highest bidder.

Boohoo Management are extremely savvy when it comes to buying acquisitions from administration, when buying property and no doubt when selling property in the future.

Mudis - buying freehold means lower risk for Boohoo. Boohoo can always sell the office and lease it back at some time in the future if they wish to raise cash.

Boohoo need to embed the new brands before buying any further brands.

This is what I like about Boohoo, they take their time to do things properly and never overextend themselves. For me, this is the sign of a great business.

Mudis - it's not wasted, it's a great investment. This is the time to buy commercial property in London when it's cheap.

Boohoo need to attract creative talent in London to work on the brands they have acquired.

Boohoo have 15 brands now, Boohoo, BoohooMan, Prettylittlething, Nasty Gal, MissPap, Karen Millen, Coast, Oasis, Warehouse, Wallis, Burton, Dorothy Perkins, Debenhams, Maine New England and Mantaray.

I believe Karen Millen, Coast, Oasis, Warehouse, Wallis, Burton, Dorothy Perkins, Debenhams, Maine New England and Mantaray will all be based at this office building in London.

Read my posts below from Paul Scott.

Kallumama - why do you come on to the Boohoo chat board constantly to sabotage Boohoo?

What does that say about you as a person and an investor?

Kallumama - your problem is you put too much emphasis on free cash flow hence why you bought Premier Foods instead of Boohoo more than 5 years ago.

You must look at Return on Equity and Return on Capital Employed and not simply concentrate on free cash flow.

Boohoo is a 4.5 billion company because it is a high growth company.

Kallumama - what was the free cash flow for Premier Foods and Boohoo for 2016, 2017, 2018, 2019, 2020?

Please provide free cash flow figures for Premier foods for each of these years.

You're like the statistician who only provides figures to suit their arguments.

Now look at the Return on Equity and Return on Capital Employed for Premier Foods and Boohoo Group for 2016, 2017, 2018, 2019 and 2020.

Kallumama - you are not invested in Associated British Foods (ABF) who own Primark because I do my research and read posters' past posts on here.

If you were invested in ABF you would have been shouting about it on here and in your other posts too.

Kallumama - Mahmud Kamani, Founder Chairman, owns 13% of Boohoo shares so the majority of his personal wealth is invested in Boohoo shares. Hence why he is passionate, driven and committed to Boohoo.

Kallumama - your problem is you put too much emphasis on free cash flow hence why you bought Premier Foods instead of Boohoo more than 5 years ago.

You must look at Return on Equity and Return on Capital Employed and not simply concentrate on free cash flow.

Boohoo is a 4.5 billion company because it is a high growth company.

Paul Scott continued:-

In my view this share is the ultimate coffee can share - it's my biggest personal portfolio holding, and I intend holding forever. It's already more than 10-bagged from the lows a few years ago, and I think the almost infinitely scalable business model, combined with incredibly hard-working and ambitious management with plenty of skin in the game, should be a winning formula for investors. Could it 10-bag again from here, to make a >100 bagger in total? Yes, I think so, taking a say 10-15 year view.

Paul Scott was a Finance Director of a UK Fashion Company before leaving to become a personal investor and write for the likes of the Small Cap Value Report on Stockopedia.

Here is what he has to say about Boohoo Group's Property Acquisitions:-

This looks interesting. BOO has bought an office block in Soho -

The Evening Standard gives more details on the Soho office deal -

• 10 Great Pulteney Street
• 46,000 sq.ft.

I’ve googled it, and the building BOO has bought (freehold - I've just confirmed this with the company) is currently called Nokia House. It’s within walking distance of the main garment area (which is a little further north, clustered around Great Titchfield Street). Soho is a much more interesting place to work though, full of interesting bars & restaurants, so with flexible working being offered as well, then I think BOO will have no trouble attracting the best creative talent to work in this new Soho office.

This comes hot on the heels of a “transformative” deal to acquire a large “state of the art” 1.2 m warehouse in Daventry, which was completed in 2019 for former owner, Arcadia group (since gone bust, and broken up). This warehouse deal enables BOO to increase capacity to £4bn of sales, more than double forecast £1.7bn revenues for FY 02/2021.

My opinion - these property deals demonstrate how serious BOO is about major expansion, not just organic, but also from all the new brands acquired. The former Arcadia brands, and Debenhams, already had significant online sales. With BOO group expertise, and a total focus on online only, I think we could see a major increase in revenues & profits, looking forwards say 2 years, once the new brands have been assimilated.

It’s very exciting, and the current forward PER of 32 really doesn’t reflect the massive expansion in the pipeline from all these new brands (it’s now 15 brands in total), in my opinion.

Hopefully ESG concerns might be a distant memory in a year or two, although never underestimate the power of the press to keep regurgitating the same story! I think anyone likely to sell on ESG concerns, is almost certainly out by now. Once they see the growth, and the higher standards being implemented on ESG, then maybe some of those sellers will be buying back in at a later date, and a higher price? ESG funds should engage with companies where there are concerns, not just walk away - how is that meant to help things improve?

There’s nothing particularly bad about the garment sector. People need clothes, they gradually turn into fluff on a tumble dryer's filter, so need to be replaced. Young people in particular want the latest looks, and why shouldn’t they? BOO garments are not the cheapest on the market, and are not designed to be worn once, that's a fallacy. I do think the group needs a better PR team, as so many of the hostile press articles are based on flawed opinions - e.g. if you watch the parliamentary committee which questioned BOO management, this

Kallumama - look at the free cash flow for Boohoo over the last 5 years compared to Premier Foods. And, Boohoo has no debt.