Tapestry, Inc., formerly known as Coach Inc., provides luxury accessories and lifestyle collections for women and men in the United States and internationally. Product offerings include modern luxury accessories and lifestyle collections, including women's and men's bags, women's and men's small leather-goods, business cases, footwear, wearables including outerwear, watches, weekend and travel accessories, scarves, sunwear, fragrance, jewelry, travel bags and other lifestyle products. The company was founded in 1941 and is based in New York, New York.
TPR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Tapestry Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Tapestry Inc ranked in the 49th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 47% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for TPR, they are:
In the past 5.48 years, Tapestry Inc has a compound free cash flow growth rate of -0.08%; that's better than only 18.22% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
Tapestry Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than just 3.62% of tickers in our DCF set.
TPR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 3.62% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TPR, try CATO, DAN, TSCO, CVCO, and RL.