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 10th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 93%. The most interesting components of our discounted cash flow analysis for Tapestry Inc ended up being:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.15%; that's greater than only 10.54% of US stocks we're applying DCF forecasting to.
Tapestry Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.93. This coverage rate is greater than that of just 11.28% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 12. This value is greater than 75.41% stocks in the Consumer Cyclical sector that generate free cash flow.
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 APTV, BLL, BLMN, MTN, and NDLS.
NEW YORK--(BUSINESS WIRE)--On Thursday, February 4, 2021 at 7:30 a.m. (ET), Tapestry, Inc. (NYSE: TPR) will hold a conference call to discuss the Company’s second quarter results, which will be reported via press release earlier that morning. To listen to this Tapestry conference call, please dial 1-877-510-8087 or 1-862-298-9015 and provide the Conference ID 4990276. To listen to the audio webcast, please visit www.tapestry.com/investors on the Internet. A telephone replay will be available fo