TacticScaleWhat Coty Does & How It Makes Money (COTY)
Updated October 2026 · reflects Coty's latest reported financials
Global beauty company selling fragrances, makeup, and skincare brands. Coty earns revenue by manufacturing and selling branded beauty products, many under licensed or owned brands, through two segments: Prestige, which sells via perfumeries, department stores, duty-free shops, e-retailers and its own websites, and Consumer Beauty, which sells via supermarkets, drugstores, pharmacies and e-commerce retailers.
How Coty makes money
Coty earns revenue by manufacturing and selling branded beauty products, many under licensed or owned brands, through two segments: Prestige, which sells via perfumeries, department stores, duty-free shops, e-retailers and its own websites, and Consumer Beauty, which sells via supermarkets, drugstores, pharmacies and e-commerce retailers. It also sells through third-party distributors.
What Coty does
Coty Inc. is a New York-based beauty company founded in 1904 that manufactures, markets and distributes fragrances, color cosmetics, and skin and body care products in the U.S. and internationally. It operates through two segments. Prestige covers high-end brands such as Gucci, Burberry, Calvin Klein, Chloe, Hugo Boss, Marc Jacobs, Tiffany & Co., Kylie Cosmetics and philosophy, sold through perfumeries, department stores, duty-free shops, e-retailers and direct-to-consumer websites. Consumer Beauty covers mass-market brands including CoverGirl, Rimmel, Max Factor, Sally Hansen, Bourjois and Adidas, sold through hypermarkets, supermarkets, drugstores, pharmacies and e-commerce retailers. Having both segments gives Coty reach across luxury and everyday beauty. The company is a subsidiary of JAB Beauty B.V.
Products & services
- Gucci fragrances
- Burberry fragrances
- Hugo Boss fragrances
- Kylie Cosmetics
- CoverGirl
- Sally Hansen
What is Coty worth?
On an owner-earnings DCF, Coty's most-likely value is about $8 versus a recent price near $3 (186% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$6) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $3 is below even the no-growth floor ($6); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -11.0%/yr. A bargain only if that pessimism is overdone.
⚠ High leverage — net debt is 5.2× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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