XPEL Inc.: Searching and Valuing a Growth Stock

Name: XPEL Inc.: Searching and Valuing a Growth Stock (English version)
SKU: W37583

George Athanassakos, Bojian Wang

Product #:W37583

Supplier:Ivey

Discipline:Finance

Setting:2024

Details:Case (PDF) • 19 pages • 2024-07-09

Subjects:

Finance and investing

Industries:

Fabrication and manufacturing

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$9.71

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A retail investor was interested in investing in XPEL Inc., a market leader in the paint protection film industry. The investor felt that the company’s stock was undervalued and wanted to conduct a company valuation. She started by reviewing the company’s annual report for 2023 and gathered relevant market information for her analysis. On March 14, 2024, XPEL Inc.’s stock was trading at US$48.56 per share, which the investor believed was undervalued. However, she would have to consider all financial and market information she had gathered before reaching a final investment decision.

Learning Objectives

This case is intended to encourage investors to practice value investing and can be used in any investing courses at the senior level. Students are guided to develop their understanding of judgement on sustainable competitive advantages. After completion of this case, students will be able to

consider a company’s business model and identify its various business and financial risks;
learn how to apply the net asset valuation and the earnings power value approaches to valuate a company and explain its competitive advantage and possible sustainability; and
understand how the value, growth, momentum multiplier can help assess a company’s valuation.