If Obesity Was a Stock You Would Want to Own It

If obesity was a stock you would want to own it. Weight Watchers which has been around for 50 years and has been evaluated in over 80 clinical studies is the Boyar Value Group’s favorite way to profit from the over 60 billion dollar weight loss industry in the U.S  alone.

At current levels, Weight Watchers trades at approximately 8.5x our estimate of the Company’s 2015 EBITDA. We believe that this valuation does not reflect the Company’s strong business model with meaningful long-term growth opportunities. Based on our sum of the parts valuation, which assigns a 11.0x and 9.0x multiple to our 2015E EBITDA for the Company’s WW.com and Weight Watchers International segments, respectively, our estimate of the Company’s intrinsic value is $65 a share. This represents approximately 55% upside from current levels. We believe that the multiples that we have applied are conservative in light of recent and historical precedent transactions (low to mid teens EV/EBITDA) of branded consumer products companies. If Weight Watchers were to be acquired, we believe it would command a significant premium.

To Read Boyar’s Intrinsic Value Research’s latest report on Weight Watchers, please click here.




Boyar’s Intrinsic Value Research LLC prepared this posting as a matter of general information. We do not intend it to be a complete description of any security or company. Affiliated companies and employees of Boyar’s Intrinsic Value Research LLC own positions in Weight Watchers. All facts and statistics referenced herein are from sources we believe to be reliable, but we do not guarantee their accuracy and it may be incomplete or condensed. Boyar’s Intrinsic Value Research LLC makes no commitment to update this posting and it may remove it at anytime from its website. This posting represents the views of Boyar’s Intrinsic Value Research LLC as of June 19, 2013 and may change without notice.

This posting is made available free of charge for all persons that may legally view this posting regardless of whether you have a relationship with Boyar’s Intrinsic Value Research LLC or its affiliates. This posting does not constitute an offer or solicitation to purchase or sell a security nor is it a solicitation of a proxy or a vote. The posting is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions. Boyar Asset Management as of June 19th 2013 owns approximately 32,220 shares of Weight Watchers.

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