Is Tapestry Inc (TPR) overvalued?
On Equity Rank's model estimate, TPR trades close to its fair value (2% below it). Tapestry Inc (TPR) last closed at $132.80; the multi-method model fair value is $136.06.
| Price | Model fair value | Price vs model |
|---|---|---|
| $132.80 | $136.06 | 2% below |
What the answer rests on
- 4 of 10 valuation methods put TPR's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, TPR's free cash flow would need to grow about 6.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 31.8% a year.
- TPR trades at 19.0 times its last year's earnings, against a median of 19.4 for 72 profitable Consumer Discretionary companies.
- Over the past year the price sat below the model fair value on 4% of trading days. The gap ranged from 2% below to 139% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TPR's fair value · What prices assume · Other companies