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:
Below please find a table outlining a discounted cash flow forecast for TPR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Tapestry Inc ranked in the 6th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Tapestry Inc, consider:
In the past 5.53 years, Tapestry Inc has a compound free cash flow growth rate of -0.22%; that's higher than only 7.65% of free cash flow generating stocks in the Consumer Cyclical sector.
Tapestry Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Tapestry Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.39. This coverage rate is greater than that of just 8.79% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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, CBRL, DBI, and PLCE.
On CNBC's "Mad Money Lightning Round," Jim Cramer said he still likes Roku Inc (NASDAQ: ROKU ). Tapestry Inc (NYSE: TPR ) is okay, said Cramer. He likes album more than stores. Instead of Xpeng Inc - ADR (NYSE: XPEV ), Jim Cramer would buy Alibaba Group Holding … Full story available on Benzinga.com
On CNBC's "Fast Money Halftime Report," Jon Najarian spoke about unusually high options activity in Tapestry Inc (NYSE: TPR ) and Capri Holdings Ltd (NYSE: CPRI ). He said traders were buying the September 18, $15 strike calls … Full story available on Benzinga.com
Selling at a forward P/E multiple of 8x, Tapestry (TPR) is a good value pick. We believe the executive team is taking the right steps to position the company for future growth, starting with a significant cost reduction initiative that targets $300M in gross run-rate expense savings. As part of...
Tapestry (TPR) tops FQ4 estimates, led by strong e-commerce growth with digital sales increasing triple digits Y/Y and a return to positive sales growth in Mainland China in the quarter. Sales were down 53% for the Coach business during the quarter to $517.4M and were off 51% for the Kate...