PVH Corp. (PVH) Stock Valuation — DCF Analysis
Apparel - Manufacturers · NYSE
Current Price
$81.96
Intrinsic Value
$128.18
+36.1% margin of safety
COMPETITIVE MOAT
↑Brand Recognition
PVH owns globally recognized brands like Calvin Klein and Tommy Hilfiger. These brands have established consumer loyalty and command premium pricing power.
↑Global Distribution Network
The company possesses an extensive global retail and wholesale distribution network. This allows for broad market reach and efficient product placement.
↑Scale and Efficiency
PVH benefits from economies of scale in manufacturing and supply chain management. This can lead to cost advantages over smaller competitors.
INVESTMENT RISKS
↓Brand Relevance Decline
Recent performance indicates a potential decline in the relevance and appeal of core brands. Failure to adapt to evolving consumer tastes poses a significant threat.
↓Guidance Cuts and Analyst Downgrades
PVH has recently cut its sales outlook, leading to analyst downgrades. This signals potential operational challenges and weaker-than-expected demand.
↓Legal and Regulatory Scrutiny
Ongoing investigations into officers and directors create reputational damage and potential legal liabilities. This uncertainty can impact investor confidence and operational stability.
Base case
PVH base case valuation
A base case discounted cash flow model for PVH estimates an intrinsic value of about $128.18 per share, against a current price of $81.96. The model assumes 7.1% annual free cash flow growth, a 10.0% discount rate, and a 7x exit multiple.
Intrinsic Value
$128.18
Margin of safety
+36.1%
Expected annual return
+9.4%
Base case assumptions: 7.1% annual growth, 10.0% discount rate, 7x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PVH valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for PVH Corp. respond.
Open DCF Calculator for PVHCompany Overview
PVH Corp. functions as a global leader in the apparel industry. Its operations are structured into six key segments: Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, Heritage Brands Wholesale, and Heritage Brands Retail. The company is involved in the design, marketing, and retail of a vast array of men's, women's, and children's clothing and accessories. Its extensive product portfolio encompasses everything from core apparel items like dress shirts, jeans, sportswear, performance wear, and intimate apparel to swimwear, footwear, handbags, and a variety of lifestyle goods such as watches, jewelry, eyewear, fragrances, and home furnishings including bedding and bath products. PVH boasts a strong brand portfolio, featuring globally recognized names like Tommy Hilfiger and Calvin Klein, alongside established labels such as Van Heusen, IZOD, ARROW, Warner's, Olga, Geoffrey Beene, and True&Co. Additionally, it manages other proprietary, licensed, and private label brands, and actively licenses its own brands for various product categories. The company employs a comprehensive, multi-channel distribution strategy. Its products are sold wholesale to a diverse network of retailers, including department, chain, and specialty stores, as well as warehouse clubs, mass market outlets, and off-price and independent retailers. Concurrently, PVH engages directly with consumers through its company-operated full-price stores, outlet locations, concession points, and various digital commerce sites. With a broad market reach, PVH distributes its merchandise to approximately 40 countries worldwide. Established in 1881, PVH Corp. maintains its corporate headquarters in New York, New York.
Financial Metrics — PVH Stock Valuation Data
Revenue/Share (TTM)
$195.90
FCF/Share (TTM)
$11.99
ROIC (TTM)
1.7%
ROE (TTM)
3.3%
P/FCF
6.9x
EV/EBITDA
10.7x
FCF Yield
14.57%
Debt/Equity
0.86x
Based on trailing twelve-month data, PVH shows a free cash flow per share of $11.99 and a ROIC of 1.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 6.9x and FCF yield of 14.57% are important context metrics when evaluating PVH's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of PVH?
PVH Corp. currently generates $11.99 in free cash flow per share. At the current price of $81.96, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is PVH undervalued?
PVH trades at a P/FCF ratio of 6.9x with a free cash flow yield of 14.57%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether PVH is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value PVH stock using DCF?
To perform a DCF valuation on PVH Corp.: (1) Start with the trailing free cash flow per share ($11.99) as the base, (2) project future FCF growth over 5-10 years based on Apparel - Manufacturers industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PVH's risk profile — with a debt-to-equity of 0.86x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to PVH?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For PVH Corp., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Apparel - Manufacturers trends, then discounting those amounts to today's dollars. PVH's ROIC of 1.7% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect PVH stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PVH, with a debt-to-equity ratio of 0.86x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.7x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See PVH PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Cyclical valuationsDCF and P/E value PVH with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.