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• This article examines whether Coty, trading at around US$2.65, represents a bargain or a value trap by exploring what the current price might imply about the stock.

• Coty’s share price has moved sharply in the short term, with a 7 day return of 11.8% and a 30 day return of 22.7%, compared with a year to date return of 14.8% and a 1 year return of 42.0%.

• These mixed returns follow a multi year period in which the stock has produced 3 year and 5 year returns of 77.3% and 69.5% respectively. This performance may have influenced how investors view its risk and reward profile. Recent coverage of the company has…