Publicação
Ulta beauty: global expansion as the key growth
| datacite.subject.fos | Ciências Sociais::Economia e Gestão | |
| dc.contributor.advisor | André, Rosário | |
| dc.contributor.author | Cardeira, Matilde Henriques | |
| dc.date.accessioned | 2026-05-13T09:10:19Z | |
| dc.date.available | 2026-05-13T09:10:19Z | |
| dc.date.issued | 2026-01-26 | |
| dc.date.submitted | 2025-12-17 | |
| dc.description.abstract | Ulta Beauty is the largest specialty beauty retailer in the United States, with a business model that integrated both mass and prestige cosmetics with in-store salon services. After several years of growth in the domestic market, the company is currently expanding into new locations, notably through Space NK in the UK and Ireland, a partnership with Grupo Axo in Mexico and a franchise agreement with Alshaya in the Middle East. From a financial perspective, Ulta exhibits a highly attractive profitability and capital efficiency profile. In FY 2024, the company reported revenues of $11.3 billion and an operating margin close to 14%, positioning itself among the top performers within its peers’ group. At the store level, new openings are estimated to deliver roughly $472 thousand in annual economic profit and a lifetime net present value of approximately $5 million, assuming a required return of 9.4%.The company operates with minimal traditional financial debt, relying mainly on leases, which keeps financial risk low and gives substantial flexibility to fund growth and shareholder returns. Using an Adjusted Present Value framework with a WACC of 9.4% and a terminal growth rate of 4.3%, the analysis results in an intrinsic value of $859 per share as of December 2026. This valuation implies an upside potential of approximately 43% relative to the reference price and supports a Buy investment recommendation. | eng |
| dc.identifier.tid | 204240220 | |
| dc.identifier.uri | http://hdl.handle.net/10362/203037 | |
| dc.language.iso | eng | |
| dc.relation | UID/ECO/00124/2013 | |
| dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | |
| dc.subject | Specialty retailer | |
| dc.subject | Expansion | |
| dc.subject | Minimum leverage | |
| dc.subject | Strong ROIC | |
| dc.title | Ulta beauty: global expansion as the key growth | eng |
| dc.type | master thesis | |
| dspace.entity.type | Publication | |
| thesis.degree.name | A Work Project, presented as part of the requirements for the Award of a Master Degree in Finance from the NOVA – School of Business and Economics |