The house of CHANEL worth 19 billion dollars?

According to data compiled by Bloomberg, based on data filed to the Dutch Chamber of Commerce (Zoetermeer), where one of the largest financial entities of the group, Chanel International BV is registered, the house of Chanel is valued at  $18.5 billion. Millward Brown Optimor calculated Chanel’s brand value alone was worth $7.1 billion in May 2013.

The report data compiled by Bloomberg is based on the average enterprise value-to-sales, enterprise value-to-Ebitda and price-to-earnings multiples of five publicly traded peers: L’Oreal SA, Estee Lauder Companies, Prada Spa, LVMH  SA and Kering. However, none of the evaluations take into account mass market cosmetics brand Bourjois sold in hypermarkets around the world or premium lingerie brand ERES. According to CPP, with these business included, the ‘Wertheimer Group’ is worth in excess of 27 billion dollars.

Brothers Alain and Gerard Wertheimer control 100% of the company, which has subsidiaries, all over the world, in a very secretive corporate structure – for instance, the Hong Kong headquarters would mostly deal with market research, globally, while, New York with marketing and PR. The pair keep their private lives and their finances out of the spotlight to such an extent that their combined $19.2 billion fortune is more than double previous estimates.

The brothers each own half of the company, according to “The Secret of Chanel No. 5,” a history of the fragrance by Tilar Mazzeo. They also own three French vineyards, including Chateau Rauzan-Segla, and Wertheimer et Frere, one of the world’s top horse racing and breeding operations.

adapted from Bloomberg / additional comments by CPP Luxury Industry Management Consultants LLC