Premier Investments Ltd (ASX: PMV) looks like one of Australia's top shares to consider, given the growth in its business yet lower valuation.
As the chart below shows, the Premier Investments share price is down by 35% since September 2025, despite a bit of recovery in recent weeks.
Premier Investments has three important contributors to its value – Peter Alexander, Smiggle and a large stake of Breville Group Ltd (ASX: BRG.
It's true that the business faces tougher trading conditions with higher interest rates and stronger inflation, potentially affecting both customers and the company's cost base.
But, I think the hefty decline has been overdone and seems to assume major, long-term impacts. I think this is an opportunity to invest in one of Australia's top shares, particularly given Peter Alexander's prospects.
Image source: Getty Images
Strong prospects for Peter Alexander
A few months ago, the pyjamas business reported that in the first half of FY26, it delivered sales growth of 4.9% to $312.3 million. Since the first half of FY20, the business has grown sales at a compound annual growth rate (CAGR) of 13.7%
Peter Alexander continues to invest in its retail channel, delivering good growth within its existing markets of Australia and New Zealand.
It noted that it opened four new stores in the first half of FY26, with one in Victoria and three in NSW.
The company also noted that four existing stores were relocated and/or expanded during the first half of FY26, with investment in upgraded store fitouts aiming to significantly improve the customer shopping experience. Of those four stores, three were in Victoria and one was in New Zealand.
It was noted that more than 15 additional opportunities have been identified for both new and/or larger-format stores in existing markets to better showcase the wider product offering.
I'm particularly excited by the fact that this division has established a presence in the UK, which has a large addressable market. It started with a few stores in London and could continue growing in the years ahead. The growth prospects here make it one of Australia's top shares to consider, in my view.
It also said it's exploring international wholesale opportunities with global, quality wholesale partners.
Smiggle is struggling at the moment, but Premier Investment is looking to reset the business and I don't think the market is considering the fact that conditions could improve.
Finally, Breville has proven itself over the years and continues to expand geographically into markets such as China, South Korea and the Middle East. I'm glad Premier Investments still owns this holding.
Valuation and dividend yield
This looks like one of Australia's top shares, in my opinion, and its valuation is very compelling.
Based on the FY26 projection on Commsec, the Premier Investments share price is valued at 15x FY26's estimated earnings with a possible grossed-up dividend yield of 7.5%, including franking credits, at the time of writing. This seems far too cheap to me.
I'm excited about the long-term potential of the business, as well as a few other ASX shares that could help us outperform.
