Prada (SEHK:1913) Valuation Check As Full Year 2025 Earnings Show Continued Business Momentum

Prada (SEHK:1913) has reported full year 2025 results with sales of €5,572.51 million, revenue of €5,717.52 million and net income of €851.94 million, giving investors fresh data on recent performance.

See our latest analysis for Prada.

The full year 2025 results land after a busy stretch for Prada, including a €300 million senior unsecured bond issue in February. The stock has seen a 9.93% 1 month share price return but a 31.53% 1 year total shareholder return decline, suggesting short term momentum has picked up while longer term returns remain weak.

If Prada’s latest numbers have you reassessing luxury exposure, this could be a moment to broaden your search and look at 99 top founder-led companies.

With revenue at €5,717.52 million, net income of €851.94 million, a share price decline of 31.53% over 1 year and a 9.93% gain in 1 month, is Prada now a buying opportunity or is future growth already priced in?

Most Popular Narrative: 45.6% Undervalued

Against Prada’s last close of HK$43.38, the most followed narrative pegs fair value far higher, creating a wide gap between current price and narrative targets.

Despite this track record, Prada’s share price has barely moved since late 2020. Today the stock trades at around ~13x forward earnings, ~6x EV/EBITDA, and ~2.4x EV/Sales, which is inexpensive compared to peers in the luxury sector.

Read the complete narrative.

Want to see what is sitting behind that valuation gap? The narrative focuses on compounding growth, resilient margins and a rich earnings multiple. Curious how those ingredients combine into its fair value math? The full breakdown spells out the revenue path, profitability assumptions and the price Prada would need to trade at for everything to line up.

Result: Fair Value of HK$79.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the thesis could unravel if luxury demand stays soft for longer, or if the Versace acquisition and higher leverage pressure Prada’s margins and flexibility.

Find out about the key risks to this Prada narrative.

Next Steps

If this mix of concern and optimism around Prada has you torn, take a moment to inspect the numbers yourself and move quickly while opinions are split. Then weigh up the 3 key rewards and 1 important warning sign to shape your own view.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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