Inditex’ marketcap reaches 100.000 million boosted by 36 percent shares’ gain

Thursday, 06 August 2015

The largest fashion company in the world has exceeded for the first time in its history the 100,000 million euros market capitalisation. Inditex thus joins the exclusive club of only eighty companies worldwide whose market value exceeds 100,000

 million euros.

The value of the Spanish retailer, whose brands also include Massimo Dutti and Bershka, surpassed 100 billion euros Wednesday for the first time. In the afternoon trading Wednesday, shares of Inditex advanced 0.96 percent to 32.17 euros, bringing its market-cap to 100.263 million euros, highlighted 'Expansion'.

PwC published a report last June which already highlighted Inditex amongst the hundred largest listed companies in the world, occupying the 77th position in this particular ranking.

Inditex: from 9.000 euros market-cap to 100.000 million in fourteen years

That of Inditex has been a success story from the beginning, not only in the world of fashion, but also on the trading floor. In fourteen years since its IPO – the company floated with just 9,000 euros worth of capitalisation and a starting price of 14.7 euros per share -, the owner of brands such as Zara and Massimo Dutti has closed in the green 11 of the 14 years since it started trading.

'The Confidential' notes that with this new milestone, the textile group has taken the lead of the Spanish benchmark index, ahead of Banco Santander (with a current capitalisation of circa 90,000 million euro) and Telefonica (70,000 million euro today).

Moreover, Inditex alone exceeds the combined valuation of the Ibex 18 less capitalised companies, highlights 'El Confidencial'.

"Interesting scenario which Inditex leaves us in the coming weeks," said Ruben Lopez, an analyst at XTB in an analysis of the prospects of the Spanish multinational that Finanzas.com has echoed. Lopez explained that "international presence allows the company to get a higher profit by bringing their income to Spain, applying the exchange rate against the euro, which is in a process of depreciation due to the massive ECB bond purchases. Furthermore, along with an always positive EBITDA and cash flow increasing, they are a very attractive company. "

The cumulative performance of Inditex shares comes in over 35 percent, almost four times the 9 percent recorded by the Spanish Ibex index.

First-quarter profit rose 28 percent, the fastest rate in more than two years, Inditex reported in June. Analysts expect a full-year gain in net income of 16 percent, according to the average of 26 estimates.

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